The firm extended its global foothold through the formation of a UK company in May 2014, and subsequent application to the UK financial watchdog, the Financial Conduct Authority (FCA) for authorisation as a financial services provider.
While no such information is available from the company, officially or otherwise, we believe that it is edging closer to achieving recognition as a European regulated and authorised firm.
Recently, the firm onboarded a new managing director, Gareth Thomas, who was also included as a director on the company’s official filings, the other director is Nauman Anees.
The regulatory process
FCA applications can take up to 12 months from the submission date, after which time the regulator is obliged to make a formal decision. During the process, an indication that the final date is nearing is a request from the regulator for the firm to make adequate recruitment, if the owners or directors are not in a position to carry out significant functions. Another indication is a gradual reduction in the questioning process by the regulator to the firm.
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UK-based forex brokers are required to fill certain positions the regulator feels is necessary for a brokerage business to run, these include the CF10 and CF11 for compliance functions, CF10a for finance, CF29 for trading/ dealing and CF30 to support the trading team, all positions may not be necessary and are dependant on the size and business model of the firm.
ThinkForex initiated its UK expansion through the registration of a domestic company under Companies House. For non-EU nationals, setting-up a company requires investment capital of £50,000 to £200,000 in-order to receive a tier-1 entrepreneur visa for the UK.
Apart from its core management team, the firm appointed a company secretary and after recruiting its Global Marketing Head, it is looking to build its UK team with advertisements for additional staff in its marketing department, including a Global Affiliate Manager.
UK Prime Destination for FX
The UK has been a magnet for international firms looking to extend their European client base, coupled with strengthening their brand through association with the UK, due to its creditworthiness and status as a sound regulator.
Most firms that entered the UK have taken a light approach by filing for the mid-tier aka for broking only, Forex Magnates believes ThinkForex’s UK entity will be receiving this license as it currently holds the full market-making license in Australia under ASIC.
In 2014, a number of firms including Gulliver, GMO Click, Avus Capital & VIBHS, received the FCA license to act as a matched principal trading firm.