Starting up Guide
TEn has made it a lot easier and quicker for people to set-up a new broker, but what does that leave the prospective start-up broker still to do?
Becoming a Broker
Obviously, terminating your relationship with your former employer or network is always a good first step. It seems an obvious point, but over the years one or two people have omitted this stage of the process and it always ends in tears when that happens.
Next… you will need to establish a Limited Company or a Limited Liability Partnership. As your regulator – on behalf of the FCA – TEn has a responsibility to ensure that you remain creditworthy at all times and it is not possible to maintain a constant ‘credit watch’ on a sole trader, without ruining their personal credit rating at the same time.
Anyway, you will need to approach TEn at some point and you will generally have at least a couple of preliminary meetings with us, during which we shall ask you for CVs, business plans, completed application forms etc. We will then do various background investigation including criminal record checks and references as part of our due diligence.
Assuming you are ok sort of people, with sufficient experience and/or qualifications to run a broker, then we can exchange contracts. TEn will set-up your company or partnership on the FCA website and, finally, we get the principals of the business registered with the FCA as Approved Persons.
And that’s it!
The whole process can take as little as a 4-6 weeks from first contact to trading, but normally it’s a little longer. Equally, it’s not unusual for prospective brokers to spend a year or more mulling over a decision in favour of independence.
It has to be the right time for you. So, is this the right time for you? Maybe it is or maybe it isn’t, but, either way, we’d love to talk to you.