Valutrades, a London-based retail broker, has upgraded its regulatory license according to CEO Graeme Watkins. Speaking exclusively to Finance Magnates, Watkins stated that the firm has upgraded its license, provided by the UK’s Financial Conduct Authority (FCA), to a full-scope IFPRU €730k firm
Full-scope IFPRU €730k firm status is given to firms based in the UK, with own base funds of €730,000 ($850,00), that must adhere to both the European Securities and Markets Authority’s (ESMA) Markets in Financial Instruments Directive and FCA regulations.
To upgrade its license, Valutrades raised £1.4 million ($1.82 million) from existing shareholders. This money will be put towards increasing the firm’s balance sheet and supporting its continual growth.
Growth could entail takeovers. According to Watkins, the firm might be using its recently raised funds and upgraded license to perform strategic takeovers or form new partnerships.
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In the run-up to receiving its upgraded license, Valutrades also made several senior management hires. Last week, for example, the broker brought in Harry Campbell-Lamerton, formerly of ADS Securities, as Chief Operating Officer.
Survival of the licensed
Watkins also told Finance Magnates that the license would help Valutrades to adhere to the upcoming ESMA regulation concerning contracts-for-differences (CFDs). He added that he believes firms that do not obtain a similar license will be unable to continue serving retail clients.
The upgrade to full-scope IFPRU €730k firm status was partially credited to Compliancy Services; a consultancy firm that aided the retail broker in its efforts to obtain the new license.
Summing up his firm’s efforts, Watkins said: “The whole team at Valutrades has worked really hard on preparing the license application and new governance, systems and controls now we have received the approval for the upgraded license. We see this as the next obvious step in Valutrades goal of being one of the leading brokers in the UK based around a strong foundation of good regulation and transparency to our clients.”