Do I need a license from the FSA for my Forex business? In the wake of the UK banking crisis, there has been considerable attention given to tightening up the rules which govern financial institutions that offer their products to the public. The Financial Services Authority keeps a publicly accessible directory of registered traders and related businesses. These have satisfied the FSA's rigorous standards for financial reporting, fiscal propriety and sound customer care; many potential investors check whether a trader is FSA registered before deciding to do business with them. That said, it's not essential for a trader to be registered; take a look at how traders can still operate legally without FSA registration.
No outside investors: if your business has been set up solely as a trading vehicle for your own funds and assets, then clearly if you're prepared to put up with any losses you make then there's no need for licensing. A key benefit of FSA registration is that funds are covered by FSA insurance, but if you're content to forego that benefit then it's perfectly legal to trade. Coddan Ltd can advise on the best corporate structure to adopt if this is your preference.
Foreign investment: whilst a UK audience is often keen to invest with an FSA registered business, there are a large number of investors outside the UK who don't see FSA registration as a priority, If your operations are largely focused on an international market, it could well be the case that FSA registration just isn't necessary for your aims and objectives to be met.
Foreign incorporation and registration: obviously a trading business which is registered outside the UK does not need to comply with FSA requirements. Coddan Ltd are experts in setting up international businesses in several popular offshore destinations, including Panama and Belize. Opting to operate outside the UK can allow effective trading without the need to for FSA or European registration.