Online foreign exchange and CFDs brokerage company ATC Brokers has obtained a variation of permission from the FCA. The UK regulator has been actively encouraging brokers which hold a European 125K license to upgrade to the 730K version.
According to a company spokesperson, the process of upgrading the permit has taken ATC Brokers about a month. The move represents a further commitment to the operations of the company in the EU.
ATC Brokers was established as an agency model brokerage and will continue to operate as such after obtaining the new permit. That said, the company is also taking additional steps to safeguard its global business.
Cayman Islands Subsidiary
In addition to its FCA license upgrade, ATC Brokers has also established a regulated subsidiary on the Cayman Islands. Regulated offshore subsidiaries have been rising in popularity since the new regulatory regime in Europe took hold at the beginning of August.
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Several brokers regulated in the EU, namely in Cyprus and the UK, now have offshore subsidiaries. The move facilitates onboarding of clients from outside of the EU who want access to high rates of leverage.
Under current ESMA rules, brokers are not permitted to advise their EU clients to switch offshore. Many customers who couldn’t reclassify to professionals are moving their money outside of Europe.
ATC Brokers Services
A spokesperson for ATC Brokers described the moves as important for the company’s goal of continuing to offering services to clients worldwide. One of the company’s services is PAMM Plus service, software which offers an all-in-one multi-account manager for white label solutions.
The subsidiary of ATC Brokers on the Cayman Islands will be run by current directors Jack Manoukian and Jen Claudio.
The Cayman Islands Monetary Authority (CIMA) has a regulatory framework that includes brokerage services and a securities law. CIMA’s rules will be client relationships with the Cayman Islands subsidiary of ATC Brokers would be governed by CIMA rules rather than by FCA rules.