Regulatory Incubation
What is a Regulatory Incubator?
Sturgeon Ventures coined the phrase in 2001, having started incubating people in financial services and following the UK’s Financial Services Authority (FSA) introducing a Controlled Function in December 2001. We are a trusted partner and venture catalyst offering regulatory hosting, regulatory incubation, hosted regulatory solutions and umbrella services.
We are the Pioneer of Regulatory Incubation, and are to this day still the leading firm in regulatory hosting in particular Corporate Finance Firms, 3rd Party Fund Raisers and delegated mandates to the UK from global AIFMs and for closed-ended UK Funds and global managed accounts.
CF21 (Advisor), CF23 (Corporate Finance) CF27 (Investment Manager) CF26 (Trader) (CF7 Sole Trader)
- Sturgeon Ventures initially incubated individuals within, CF21, CF23 and CF26, whilst Sturgeon Ventures was Seonaid’s branding as a Sole Trader (CF7)
- Appointed Representatives were and are, individuals and/or Firms within a Principal at first for IFAs and Insurance Firms promoting the product of the Authorised & Regulated Principal
- Sturgeon Ventures introduced the concept of the Wholesale Appointed Representative Firm in 2005 to bring about the branding to those individuals who were incubated by Sturgeon Ventures
- To create their own brand, whilst the persons were still incubated with their controlled functions for the activity in Sturgeon Ventures, the same individuals were approved as Principals of the AR Firm, (CF1) AR Director of a Limited Company or (CF4) AR a Partner of a UK Limited Liability Partnership
- To advise corporates to fund raise, or arrange a transaction, or place a transaction, an individual today is a CF30 (AR) to carry out these activities
- An Appointed Representative Firm can only advise or arrange, i.e. introduce
- The Fund Manager must sit within the Principal Directly Authorised Firm, so Seonaid looked to partner external fund managers in 2003.
In 2003 Sturgeon Ventures partnered other Firms, such as Gallega Capital Management Ltd and Bourne Financial Limited in 2004 to bring about the incubation of fund managers – CF27s, at the time often called A Hedge Fund Hotel, the leading firm was PCE started by Chris Day and Sonny Schnieder incubating numerous hedge funds, many of which also worked with Sturgeon Ventures in other capacities.
In 2006 Sturgeon Ventures incorporated to become Sturgeon Ventures LLP as a Fund Manager to incubate the fund managers – CF27s directly, rather than with Partner Firms.
Sturgeon Ventures is the longest running and most experienced wholesale regulatory incubator in the United Kingdom. Since inception the firm has incubated 150 start-ups including a number of established firms from the USA and other countries launching their UK businesses. A financial services company launched in weeks not months. We deliver bespoke solutions to our clients.
Sturgeon Ventures is Authorised and Regulated by the FCA, helping you to work towards your FCA Authorisation by delivering bespoke solutions to our clients.
Sturgeon Ventures is a “Regulatory Ecosystem”, empowering effective regulatory change. Regulation can be
complex, costly, time-consuming and seemingly ineffective, regardless of the resources you commit. Working with Sturgeon and the team is a way to engage with continuous innovation and Sturgeon’s network of partners who collaborate on solutions.
The industry also calls our service a regulated umbrella, hosted regulatory platform, hosted regulatory solution or regulated hosting. However we see ourselves as a short and long term trusted partner, not just for a rainy day.
Incubated by Sturgeon’s regulatory umbrella framework, you benefit from:
- No need for upfront capital
- No time wasted dealing with regulatory authorisation and regulatory filings
- Opportunity and time to develop your business concept to the right markets
- Dealing with our experienced and regulated personnel as part of your team however large or small
If we cannot offer the appropriate solution we are known to 90% of the other service providers in this sector and we can introduce you to an appropriate provider. Contact us for further information: hello@sturgeonventures.com.
You can also read more on the FCA website about what authorisation involves for financial services and investment management firms – https://www.fca.org.uk/firms/authorisation.
Regulatory Incubation – How much does it cost?
There is an onboarding fee which is prior to submission to the Financial Conduct Authority on a per person basis that will be submitted and to review the company’s controllers and due diligence and business plan and financials.
There are no further costs until approved by the FCA.
We will then charge an ongoing monthly fee for use of our regulatory license, depending on the number of people and complexity and our compliance services which will include mandatory training. We are not the cheapest nor the most expensive but definitely the most experienced and authentic team.
Flexible Working
Breaking out of working for a big firm and setting up your own start-up allows for agile teams and more flexible working.
The ability to work flexibly is for some, a bigger draw than a salary, giving them a better work life balance. Creating agile teams, is a great way of empowering people to be able to work how and where best suits their circumstances. Office costs are less and team productivity increases, enabled by the use of technology and collaborative working tools.
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