Investment Business Authorisation
Investment activities are covered by two major pieces of legislation:
- Investment Intermediaries Act, 1995 as amended (ROI); and
- Financial Services & Markets Act, 2000 (UK)
Investment Business is a reserved area for which additional authorisation or licence is required.
Investment Business Authorisation under the Investment Intermediaries Act, 1995 as amended in Republic of Ireland
To undertake or give any investment business advice, even generic, requires a firm to hold an authorisation to ensure that a breach of the Act, and as such a criminal offence is not committed.
There are several categories of authorisation which allow a firm to conduct a number of activities ranging from basic generic advice to activities which require specific knowledge such as discretionary fund management. It is up to a firm to choose the correct category to suit its needs.
To become authorised a firm must:
- Complete and submit the application form and receive notification of approval
- Satisfy the Quality Assurance Committee that it meets the criteria and is fit and proper to carry on investment business work in the chosen category
- Pay the annual fee
- Comply with the IB Regulations and Guidance
- Be subject to a programme of quality assurance
Once a firm is authorised it is required to have appropriate internal procedures.
Designated Professional Body Licensing under the Financial Services and Markets Act, 2000 as amended in the UK
Firms are permitted to conduct a restricted range of activities under the DPB regime in the United Kingdom.
This is a complex regime and firms should consider the guidance schedules in the DPB Handbook to determine whether a licence is required.