Good Morning Gents,
Stumbled upon this site whilst searching for solutions and must say i'm very impressed with the knowledge of some of the members here. Therefore I'm looking for advice if at all possible...
This is a black sheep topic having seen similar threads and the majority of eyes will roll but for sure there are solutions and workarounds.
I'm an EU citizen and have worked in the industry for 10 years. With the introduction of Mifid II, the EU FX market became increasingly over regulated and the burden of compliance, reporting and applying the draconian leverage limits saw many firms go under. We know the intention from the various regulators was client protection - but this just pushed 90% of clients into seeking off shore entities where they can get obtain what they are after...leverage. If I had a dollar for every client that asked me where they could find a reliable off shore broker during this period Id be sat on a beach drinking cocktails. With that being said - the companies that predicted this movement of clients set up entities for their group in jurisdictions such as BVI, Seychelles and the most popular SvG. So whilst the they plaster FCA, Cysec, ASIC regulations on their respective websites - if you sign up as a client whereby you want leverage - you find yourself being redirected to their SvG entity onboarding page for example. Clever.
So the company Im looking to form will be registered as an IBC in SvG with legal opinion - client target market isn't necessarily just EU (although that is where Im based) but worldwide..
How do I structure the company outside of the relatively simple registering of the IBC so that Im able to receive and send client funds via various psps, whilst extracting and company profits where appropriate? Yes banking for FX companies, whether regulated or not is a headache and I wont be able to get a bank account in SvG, but there are other ways around receiving and sending client funds! It has been suggested by a consultant that I should be able to get an IBAN solution in Europe via an EMI. And yes I know I will need back ups, and back ups for back ups due to the nature of the business and the level of risk involved.
From what I gather one way is to set up a holding company for the SvG entity and another company that invoices the SvG entity for it's services - Like a payment processor? Where would be the best place to set up the service center and where should the HC be registered?
The intention is to fully obtain regulations down the line, but for the time being, the capital requirements inhibit me from being able to go down that route.
The tech and liquidity side of the actual brokerage house is already solved.
Any suggestion on the structure would be appreciated.
Stumbled upon this site whilst searching for solutions and must say i'm very impressed with the knowledge of some of the members here. Therefore I'm looking for advice if at all possible...
This is a black sheep topic having seen similar threads and the majority of eyes will roll but for sure there are solutions and workarounds.
I'm an EU citizen and have worked in the industry for 10 years. With the introduction of Mifid II, the EU FX market became increasingly over regulated and the burden of compliance, reporting and applying the draconian leverage limits saw many firms go under. We know the intention from the various regulators was client protection - but this just pushed 90% of clients into seeking off shore entities where they can get obtain what they are after...leverage. If I had a dollar for every client that asked me where they could find a reliable off shore broker during this period Id be sat on a beach drinking cocktails. With that being said - the companies that predicted this movement of clients set up entities for their group in jurisdictions such as BVI, Seychelles and the most popular SvG. So whilst the they plaster FCA, Cysec, ASIC regulations on their respective websites - if you sign up as a client whereby you want leverage - you find yourself being redirected to their SvG entity onboarding page for example. Clever.
So the company Im looking to form will be registered as an IBC in SvG with legal opinion - client target market isn't necessarily just EU (although that is where Im based) but worldwide..
How do I structure the company outside of the relatively simple registering of the IBC so that Im able to receive and send client funds via various psps, whilst extracting and company profits where appropriate? Yes banking for FX companies, whether regulated or not is a headache and I wont be able to get a bank account in SvG, but there are other ways around receiving and sending client funds! It has been suggested by a consultant that I should be able to get an IBAN solution in Europe via an EMI. And yes I know I will need back ups, and back ups for back ups due to the nature of the business and the level of risk involved.
From what I gather one way is to set up a holding company for the SvG entity and another company that invoices the SvG entity for it's services - Like a payment processor? Where would be the best place to set up the service center and where should the HC be registered?
The intention is to fully obtain regulations down the line, but for the time being, the capital requirements inhibit me from being able to go down that route.
The tech and liquidity side of the actual brokerage house is already solved.
Any suggestion on the structure would be appreciated.
