inbound webinar presentation

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Webinar - Gateway To Europe Cordium’s inbound solutions for US Fund Managers

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You can join either by VoIP or dial in by telephone

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Questions

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You can submit your questions using the Questions area in the GoToWebinar console

April 1, 2016CORDIUM POWERPOINT MASTER 3

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Moderated by:

Sarah Donnelly - Sales Director, Cordium

Philip Naughton -Compliance Cordium

Matthew Crisp - Financial & Regulatory Accounting Cordium

Sutha Kanagarajah - Tax

Joe Vittoria - Mirabella

Karthik Iyer - Asset Management & Capital Markets

Sector Lead, UK Trade & Investment


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Webinar - Gateway To Europe UKTI – Financial Services Organisation (FSO)

The UKTI FSO acts as a single body for Financial Services companies to engage with, as they plan to grow in and from the UK.

What are UKTI FSO Overarching Objectives?

o The UKTI Financial Services Organisation (FSO) is comprised of a team of dedicated professionals with a sector specific approach to financial and related professional and businessservices.

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UKTI FSO takes strategic direction from HM Treasury & the Financial Services Trade & Investment Board (FSTIB) and is accountable for delivering some of its initiatives. We also have 3 principal aims:

1. To attract and retain high value Foreign Direct Investment (FDI) into the UK;

2. To help UK based companies grow their business through international trade; and

3. Develop and maintain relationships with existing investors in the UK for the purposes of encouraging further long term investment into the UK.

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Webinar - Gateway To Europe UKTI – Government Commitment to the Sector

What is the Investment Management (IM) Strategy?

The UK Investment Management (IM) Strategy was launched in Budget 2013 and committed the UK to improve its international competitiveness in the IM industry.

It is the government’s job to create the right environment and support firms to gain market share, especially in emerging market economies where new investors, savers and markets are appearing.

“That is why I have established the Financial Services Trade and Investment Board (FSTIB)-to bring together the best that our public and private sectors have to offer to strengthen the UK’s performance in financial services at home

and abroad.”

- Chancellor George Osborne (2013)

What is the UK Investment Management Strategy

(IMS)?

The UK Investment Management (IM) Strategywas launched in Budget 2013 and committed theUK to improve its international competitiveness inthe IM industry.

This strategy focuses on three main components:

1. Taxation: government will work hard to ensure a tax regime which is simple, fair and streamlined.

2. Regulation: government will ensure a regulatory environment that applies high internationally consistent regulatory standards and that remains responsive.

3. Marketing: government will work closely with key industry bodies to carry a co-ordinated marketing approach to all corners

of the globe.

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The big numbers for UK asset management

Source: EFAMA & TheCityUK

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Average AUM per manager & Concentration

of Top 5 managers

Source: EFAMA Asset Management Report 2015

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Key Messages for Investment Management from UK

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If you are thinking of the UK as place to do business in, with or from, help is available to make the process easier!

A One Stop Shop Concierge Service gives you all the help you need to set up in the UK.

1. Set up: Help navigating the process of setting up an investment management company

2. Introductions: to the ecosystem of professional services providers and advisors.

3. Accessing market opportunities: Bespoke research.

4. Helping select the best market location

5. Tax Advice

6. Support with visas and entry into UK

7. Finding quality staff

8. Ongoing government support

Once in the UK, UKTI FSO can help your business grow internationally from the UK

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Welcome to London


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The Piccadilly Line: Heathrow to the West End


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Let’s simplify it a little

The Piccadilly Line: Heathrow to the West End


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The Piccadilly Line: Heathrow to the West End ….…is like your Journey to being Fully Operational


So let us begin our journey ……..

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Do I need to be regulated?

What activities require FCA regulation?

There are various examples, such as:

o Marketing, for Managed Account management services, AIFs and UCITS

o Managing with discretion

o Corporate Finance activity

Legal advice required to confirm definitively activities being undertaken

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What else needs to be set up?

UK tax and Financial Regulatory Reporting

People

o Employment status

o Payrolls

o Contracts and Handbooks

Structure

o LTD or LLP?

V.A.T.

o Registering

o Reclaims

Business as usual

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Baseline reporting schedule – Full-Scope AIFM: CPMI (BIPRU) Typico

What else needs to be set up?

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Preparing and submitting an FCA Application

The principal steps are:

o Determine what permissions you need

o Prepare a Business Plan

o Understand minimum regulatory financial requirements with forecasting in FCA format

o Preparation of the application itself

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Waiting for FCA Approval

o Current waiting time for FCA Case Officer is 22 weeks.

o Which Case Officer is allocated to your application can make a difference

o Case Officer will ask questions, responding quickly is important, but knowing how to respond is critical since poor responses can lose time.

o Once the Case Officer is satisfied you will be “Authorised Subject to” a few final conditions, the most important will be proof of capital.

o You will decide which exact day your firm will be authorised.

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Getting FCA Authorisation

o Your firm will appear on the FCA Register, which will details matters such as your permissions/licence, contact details, approved persons and for what function.

o Make sure you get your MiFID passports in quickly, if required. Otherwise you can’t do business with the rest of EU.

o You can’t apply for MIFID passports as part of your application. You apply separately and these will be received 1 month from request. If you are an AIFM passporting you would need to register with the regulator in each jurisdiction you wish to market in.

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Starting Regulated Activities

Compliance calendar – Full-Scope AIFM:

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Starting Regulated Activities

Cordium can help you to deal with this:

o Compliance Infrastructure (should be in place at authorisation)

o Compliance Monitoring

o PILOT

o ELF

o Financial and Regulatory Reporting/GABRIEL

o Annex IV service

o Projects

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Being Authorised

This is not the end of the story:

o You must keep up with all new regulations

o Maintain your infrastructure

o You must review your capital on an ongoing basis (yes daily!)

o You must undertake ongoing and appropriate training

o For Portfolio Managers there are significant AIFMD obligations

Of course there are non-regulatory activities, such as

Companies House, HMRC, and VAT filings, and annual

financial audits.

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Fully Operational

The good news is that your UK firm is fully operational.

Congratulations!

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6-9 Months

1 Month

But is there an easier way?

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Benefits of Regulatory Hosting:

o Skip the long wait for authorisation.

o Enable you to hire people with the certain knowledge that you can start on time.

o No FCA reporting requirements.

o No FCA capital requirements.

o Compliance and Risk outsourced to experienced people.

Regulatory Hosting with Mirabella

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Regulatory Hosting with Mirabella

Mirabella by-the-numbers:

o Currently over 110 FCA Approved Persons, and over 800 since inception

o Currently managing over $5b in Assets, for 16 mandates

o Currently has over 40 Appointed Representative firms, over 100 since inception.

o Exclusively hosting since 2004, no in-house activity

o Client facing team of 13 professionals

Mirabella has been trusted by major investors, including SWF, major global seeding firms, and large pension funds.

Meetings in NY/CT available week of April 11th.

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Summary

Summary by Sarah Donnelly

We thank you for your kind attention

Questions

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You can submit your questions using the Questions area in the GoToWebinar console

For more information or sales enquiries please contact [email protected] for UK.

mailto:[email protected]