© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - What is Regulatory Hosting and How Does it Work?
Posted 29th July 2021

What is Regulatory Hosting and How Does it Work?

Regulatory hosting enables businesses to carry out regulated activities without directly being FCA approved. We go into more detail in this article.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

What is Regulatory Hosting and How Does it Work?
Accounting sheets with a pen and a calculator

Regulatory hosting enables businesses to carry out regulated activities without directly being FCA approved.

For firms offering regulated services such as credit brokering, investments and banking, the FCA approval process can be both costly and time consuming. Hence, many businesses look for regulatory hosting as an alternative that allows them to act under the hosting umbrella of another approved firm, often paying a licensing fee for the benefit or offering a percentage of their business.

Using a regulatory host can be very useful for businesses who wish to carry out regulated services but are awaiting approval for their own license. Or perhaps, it is more timely and cost effective to use another company’s license, minimising administration and lowering risk too.

With regulatory hosting, the client will become an Appointed Representative (AR) of the Host Firm (Principal). The AR will then be able to carry out regulated activities under the FCA approval of the Principal, using their guidance.

What Are The Advantages of Using a Regulatory Host?

A fast route to the market is often available through a regulatory host, since you can get approved and be trading legally within a few weeks, compared to submitting a lengthy application process to become FCA Authorised, which can take between 6 – 12 months, or longer.

Affordable – Using a regulatory hosting company can allow you to enter the market at affordable rates, whether it is paying a monthly fee or giving up a share of profits or equity in your business. By comparison, the set-up fee for FCA authorisation can be between £1,500 – £25,000 per year, or more, depending on the size and complexity of your business.

Compliance expertise is available from the host firm, since they have a license already and have been through the motions. Whether you offer investments, finance or insurance, they can assist with several components including legals, business model, marketing and more.

Establish a good relationship with the FCA which will help if and when you decide to become individually FCA authorised.

 

What Are The Downsides of Using a Regulatory Host?

Operating under a regulatory host comes with responsibilities and you have to comply with the recommendations of that host company. Plus, any implications from your activity will also impact that of the host, positive or negative, so you have to ensure that you are always staying on the right side of regulation, even if that means not taking risks.

Trust is a big factor, so you need to respect your regulatory host and vice versa, since all policies, procedures and records will be supervised and kept on file by the company. For some companies, it may not be ideal to have another firm knowing all their numbers and business activity.

As an appointed representative working underneath someone else’s host, you cannot manage your own investments. So if this is a requirement, you may fall short in this area.

Finally, whilst the licensing fees or giving up equity may be cost-effective for some, it may be expensive for others. If your business takes time to get off the ground, you may be lumped with high fees to pay each month. Or if your business really takes off, you could find yourself giving up equity each month which may not be ideal.

An AR cannot directly manage its own investments – the Principal must do this. However, an AR can market its products and provide investment advice.

Categories: Finance, News


You Might Also Like
Read Full PostRead - Eye Icon
ACI Media Group Buys Minority Stake in MyDistrict.net
M&A
02/07/2015ACI Media Group Buys Minority Stake in MyDistrict.net

ACI Media Group Buys Minority Stake in MyDistrict.net

Read Full PostRead - Eye Icon
Using Technology to Protect Your Finances in 2023
Finance
01/12/2022Using Technology to Protect Your Finances in 2023

Businesses and individuals across the globe are facing difficulties due to rising inflammation levels in the current geopolitical situation. People are already beginning to make adjustments to combat these difficulties. Here, we will discuss how using technol

Read Full PostRead - Eye Icon
What are the Potential Issues with Mergers and Acquisitions?
M&A
28/11/2022What are the Potential Issues with Mergers and Acquisitions?

When two companies combine, it can help the new entity boost its market share and profits. The two main ways of achieving this are through mergers and acquisitions. Mergers occur when separate companies combine to form one company.

Read Full PostRead - Eye Icon
India’s Internet of Things (IoT) Market to Grow
Strategy
25/09/2015India’s Internet of Things (IoT) Market to Grow

According to a recently released TechSci Research report, “India Internet of Things (IoT) Market Opportunities & Forecast, 2020”, the IoT market in India is projected to grow at a CAGR more than 28% during 2015 - 2020.

Read Full PostRead - Eye Icon
Nordex SE Helps Uruguay Reach 1,000 MW Installed Capacity
Finance
12/10/2016Nordex SE Helps Uruguay Reach 1,000 MW Installed Capacity

Nordex is commissioning the largest wind farm in Uruguay (142 MW) to date - The manufacturer also supplied and commissioned the first turbine installed in Uruguay, back in 1999

Read Full PostRead - Eye Icon
How to Make Sure Your Remote Team is Cyber Secure
News
29/04/2022How to Make Sure Your Remote Team is Cyber Secure

As more and more businesses go remote, it’s important to make sure your team is cyber secure at all times. Here are the top ten ways to do just that. Monitor your data centre Whether your team is using a cloud-based service or you are relying on a physic

Read Full PostRead - Eye Icon
It’s the Solution, Not Necessarily the Technology
Innovation
19/08/2022It’s the Solution, Not Necessarily the Technology

Warehouses have become busy fulfilment factories, where throughput and performance can determine business success or failure.

Read Full PostRead - Eye Icon
Top Four Dynamics 365 Products to Help You Elevate Customer Service
News
17/02/2025Top Four Dynamics 365 Products to Help You Elevate Customer Service

Delivering excellent customer service before and after a sale is essential for any business, regardless of its size, specifics, or market niche.

Read Full PostRead - Eye Icon
Malicious Intent Outweighs Technology as Biggest Threat to Personal Data
Legal
15/03/2019Malicious Intent Outweighs Technology as Biggest Threat to Personal Data

Against the backdrop of a complex and growing cyber threat landscape, organisations are waking up to the fact that one of the biggest chinks in their armour against a data security breach is humans. In fact, a staggering fifty two percent of respondents believ



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow