CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. -- % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What DARWIN managers without investment advisor licence can do to get initial AuM other than DarwinIA

Hmm interesting topic indeed.

Since now, I always believed that a Darwin producer may promote his or her Darwin without any legal consequences.
On the other hand, If I go on national television and say that people should buy this or that Darwin I would face serious penalty since I do not have a license for that

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They use disclaimers as subtitles on TV … :grinning:

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Hahahaha true that, so the disclaimer should be here as well right ?

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Oh yeah! :joy:
If the word „buy“ or „sell“ appears in a post a 20 lines disclaimer will be added automatically to that post and better: the word is replaced with 3 or 4 „*“ so that it’s not shown. :rofl:
(sorry, kidding)

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I think the law could be different in every country, however a general rule that you can advertise, promote anything without taking money for that. So, if you advice for free is not problem, if you take money for that, then you need a license.Nobody can tell you not to recommend any product if you are not making any money on that…like recommending a friend restaurant or hairdresser…even to buy Apple stock.


Thank you for your response.

Indeed with the restaurant I agree, but is it not that for any financial advise you need a license ?
Edit: I think it applies in my country, I see you said as a general rule. Misread

I can not answer this question, every country has different law, but I don’t know any country asking for a license to give FREE advice. Is there any law preventing me to recommend you to buy Apple stock now?
Edit: FREE is the key word

I looked it up for my country.

As a individual I may advise anybody on any product for free indeed (Freedom of speech)
As a corporation I need a license to do any advice in financial products.

Thanks for the insight !

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Which law is valid here? Spanish? British? The Country’s where the members are residents or the forum is hosted?

I think in this community Darwinex itself got it covered.

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That’s what I was talking about.

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Added to the topics to be covered in one of the next #darwinex-uncut episodes!


Thank you @bianka !
Think it will clarify a lot for all the people who may read this topic.

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Here we are. In minute 5:34 of the following #darwinex-uncut episode, Juan and Ali address what DARWIN managers without investment advisor licence can do to get initial AuM other than DarwinIA.

This is a topic we’ll keep approaching from different angles in upcoming episodes and would love to incorporate feedback!

Note: we’re working on publishing transcripts of videos and audios.

I wonder is this a legal distinction between strategy providers not earning from investors but rather taking a commission from Darwinex. So as a strategy provider I may promote “my” Darwin since I am not managing it (darwinex is) and hence not earning fees from the AUM.

However since any commission I earn from Darwinex for providing a strategy is related to the investment made into the Darwin and also related to my performance in the strategy I provide to Darwinex, this may be where the future regulation or current legal opinion lies? I am assuming at this point in time the regulation as it is worded in the UK does not extend to such earning arrangements.

It would be interesting to hear the advice Darwinex may have received from their lawyer, noting of course the regulation would be on the provider and not Darwinex (who are already regulated as IM).

@integracore2 I think you are right - this is an important subject to many,.

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Thank you for putting this into words better than ourselves! There’s indeed a case for inviting a specialist to an episode to discuss this. We’ll work on this.

The strange point is that Darwinex requires a license for wealth management if you want to register as a company. If I got it right.

If the Darwin manager is only a technical provider, that would not be necessary.

That’s a mismatch which could be used against all Darwin managers or Darwinex as they „knew“ the requirements.

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Could it be that you’re confusing a LEI code (which is required) with a wealth management licence (which is not)?

Here’s what is needed for opening a corporate account at Darwinex:

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I think so, yes, besides I remember the requirement different. As I read it now, it is just a lot of paperwork and some costs but it will not be rejected, also for new or orphan companies starting a business with Darwinex.


That might be more important for some traders end of this year if the German tax law remains crazy starting from next year as discussed here:

Is it possible to change the trading account behind a Darwin from a private one to a corporate account?

Usually it is not possible to change account type and owner.

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That’s correct, it’s not possible to change account ownership once the account has been verified. We understand the inconvenience of this.

I think yes but what do you mean by orphan companies?