Sturgeon Ventures LLP raised a query with the FCA concerning the use of trading names by firms offering FCA Authorisation Services (e.g. Regulatory Hosting and or Regulatory Incubation, Regulatory Umbrella). The concern was that some FCA-authorised firms were using trading names that were also incorporated companies, which could mislead potential clients.
Key FCA Register Insight
When conducting due diligence on a firm:
- Always check the FCA Register under the ‘Names’ section for trading names.
- Trading names listed on the FCA Register are not separate legal entities – they are aliases for the authorised firm.
- However, if you see a limited company name (e.g. ABC Ltd) used as a trading name, that does not mean that ABC Ltd is FCA authorised, unless it is itself listed on the Register with its own FRN.
Important FCA Clarification
Following consultation with its policy and supervision teams, the FCA confirmed:
Example:
“Cahoot” is a trading name of Santander UK plc. It is not a separate legal company.
But “XYZ Ltd” cannot be a trading name of “ABC Ltd” if both are incorporated.
What if Two Companies Want to Work Together?
If one incorporated company wants to operate under another’s authorisation:
- The correct mechanism is to become an Appointed Representative (AR) of the authorised firm.
- This relationship must be formally recorded and approved by the FCA.
Best Practice for Firms Seeking a Regulatory Umbrella
- Always verify the FRN and match it to the actual legal entity you’ll be contracting with.
- Understand the difference between:
- Trading names (aliases of an authorised firm)
- Separate companies (require their own FRNs or AR status)
- If in doubt, consult the FCA Register or contact the Financial Conduct Authority directly.
Use of Trading Names by FCA-Authorised Firms – Regulatory Clarification
Context
Sturgeon Ventures LLP approached the Financial Conduct Authority (FCA) to clarify regulatory concerns regarding the use of trading names by FCA-authorised firms—particularly those offering Regulatory Hosting or Appointed Representative services.
The issue arose from instances where firms listed on the FCA Register were operating under trading names that were also incorporated companies (as found on Companies House). This created confusion for clients and counterparties trying to assess which entity they were actually contracting with.
FCA Register – Understanding Trading Names
According to the FCA:
“A trading name is a name that a firm may use that is different from its legal name.”
— FCA Handbook Glossary & FCA Register Help
On the FCA Register, you can find a firm’s:
- Legal name
- FRN (Firm Reference Number)
- Trading names, if applicable
Importantly:
- A trading name is not a separate legal entity.
- A limited company cannot be a trading name of another limited company.
- Only one legal entity can be associated with a specific FRN.
- If an incorporated company wishes to operate under another authorised firm, it must be set up as an Appointed Representative (AR), not just use the firm’s FRN via a trading name.
This has been formally confirmed by the FCA after internal consultation with its Policy and Supervision teams in response to the enquiry by Sturgeon Ventures LLP.
Examples of Legitimate Trading Names
The FCA Register includes many examples of well-known brand names operating as trading names of authorised firms:
| Trading Name | Legal Entity |
| Cahoot | Santander UK plc |
| Smile | The Co-operative Bank plc |
| First Direct | HSBC UK Bank plc |
| MBNA | Lloyds Bank plc |
| Black Horse | Lloyds Bank plc |
| Scottish Widows | Lloyds Bank plc |
| Tesco Bank (retail banking side) | Tesco Personal Finance plc |
| Mettle | National Westminster Bank plc (NatWest) |
| Halifax | Bank of Scotland plc |
| Birmingham Midshires | Bank of Scotland plc |
| Ulster Bank (UK operations) | National Westminster Bank plc |
In each of these cases:
- The trading name is not a company in its own right.
- The legal entity is fully authorised by the FCA and holds the FRN.
- Contracts are with the underlying legal entity, not the brand or trading name.
Common Misunderstanding
Some firms attempt to misuse a trading name that is also a registered company name, creating the false impression that the company itself is authorised by the FCA. However:
- If Company A Ltd is FCA authorised, and Company B Ltd is merely a registered entity using the name of Company A as a “trading name,” this is not compliant.
- Company B cannot ‘share’ the FRN of Company A, unless it becomes a formally appointed AR.
- Even then, this status must be reflected on the FCA Register under the Principal Firm’s AR listings.
Proper Structuring: Appointed Representatives (ARs)
If two separate companies want to work together under a regulatory umbrella:
- The correct model is the Appointed Representative regime.
- The Principal Firm (FCA authorised) is responsible for overseeing the AR’s regulated activities.
- The relationship must be registered with the FCA, and details must be visible on the FCA Register under that firm’s AR section.
- The Appointed Representative Firm is not a Client of the Principal Firm.
- The Clients of an Appointed Representative Firm is a regulatory responsibility of the Principal, ie the Principal should review pre the signing of an Engagement Letter, review and approve the KYC of the Client in line with AML and Financial Crime rules and ensure classification is correct.
See:
Key Takeaways
- Always verify the FRN on the FCA Register.
- Make sure the legal entity you are contracting with is the authorised entity, not a similarly named limited company.
- Trading names ≠ separate legal companies.
- An FRN cannot be shared between legal entities.
- Where there is a shared activity between firms, ensure it’s structured through an Appointed Representative agreement, not just brand confusion.
Further Guidance
For concerns about misrepresentation or verification of firms and trading names:
Visit the FCA Register
Contact the FCA Contact Centre:
📞 0300 500 0597
🌐 www.fca.org.uk/contact
