The UK financial industry is a vast, complex and highly regulated place. It is therefore important to understand the application procedure in place when looking to acquire a UK forex license. Knowing who the regulatory body for UK forex brokers is also essential as compliance with the rules and regulations as laid down by this regulatory body is paramount.
The regulatory body responsible for the issuing of forex licenses and monitoring of forex activity is the UK FSA, also known as the UK Financial Services Authority. The UK FSA was established to provide a regulatory framework for all financial companies from rule making and investigatory practices, to powers of enforcement and ensuring statutory conditions are met.
The UK FSA enforces its regulations through the Financial Services and Market Act 2000 (FSMA). This Act provides the scope of objectives, standards, rules and remedies for financial service organizations’ in the UK. It is an independent regulatory body which means that the funding for the body to operate is attained solely from the firms it regulates and not from government expenditure. Despite being an independent body, the UK FSA is answerable to the Treasury and higher up, the UK Parliament.
The structure of the regulatory body is headed by the ‘Board’ of which decides on the overall policies and direction of which the FSA takes.
The scope of the UK FSA regulates exchanges, financial companies and financial services markets.
To obtain UK forex license the first thing you must do is create a UK company for the purpose of engaging in forex activity in the UK. On completion of the company formation, an application for a forex license is needed. This application typically requires certain documents to be submitted to the UK FSA, These documents are the company Memorandum and Articles of Association, and company manuals for internal and external procedures. You may also need to submit results of your fit and proper test.
The application procedure for a forex license is quite complicated and time consuming, thus enlisting the support of Starting Business to guide you through it will ensure that you follow all the correct procedures and supply the right documents to the UK FSA.
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