Exemption from FCA authorisation successfully navigated thanks to practical knowhow

An overseas futures broker wanted to be recognised as a Registered Intermediating Broker by the London Metal Exchange. Their proposal for arranging deals in investments required regulation by the Financial Conduct Authority.

Unfortunately, applying for FCA authorisation was not economically viable for our client. It was at this stage that they turned to our Investigation, Regulation and Tax department for help.

Stuart Brothers took on the case, writing a letter of opinion as a regulatory specialist. He said: “I argued that my client’s proposed activities fell within the confines of the overseas persons exemption. These activities also fell within the London Metal Exchange’s rulebook, which would hopefully allow for an exemption from the FCA’s authorisation.”

The letter was approved by LME’S lawyers and the client was able to proceed with their application to be recognised as an RIB. Producing this letter required an analysis of his client’s operational procedures when measured against the London Metal Exchange’s matching rules.

Thanks to Stuart’s expert knowledge of the financial industry, he was able to advise accordingly and achieve a result for the client which allowed them to apply for exemption successfully.