This webinar discusses inbound solutions for US fund managers looking to operate in Europe, specifically through the UK. It provides an overview of the UK regulatory environment and authorization process, which can take 6-9 months to complete. Regulatory hosting offers an alternative approach, allowing firms to start operations immediately while an experienced firm like Mirabella handles ongoing compliance and reporting requirements. Attendees learn about the various activities that require Financial Conduct Authority regulation and support services available from UK Trade & Investment and Cordium to navigate setup and ongoing operations in the UK.

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Webinar - Gateway To Europe
Cordium’s inbound solutions for US Fund Managers
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3. April 1, 2016CORDIUM POWERPOINT MASTER 3

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Moderated by:
Sarah Donnelly - Sales Director, Cordium
Philip Naughton -Compliance Cordium
Matthew Crisp - Financial & Regulatory Accounting Cordium
Sutha Kanagarajah - Tax
Joe Vittoria - Mirabella
Karthik Iyer - Asset Management & Capital Markets
Sector Lead, UK Trade & Investment
Webinar - Gateway To Europe
Cordium’s inbound solutions for US Fund Managers

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Webinar - Gateway To Europe
UKTI – Financial Services Organisation (FSO)
The UKTI FSO acts as a single body for Financial
Services companies to engage with, as they plan to
grow in and from the UK.
What are UKTI FSO Overarching Objectives?
o The UKTI Financial Services Organisation (FSO) is
comprised of a team of dedicated professionals with a
sector specific approach to financial and related
professional and business
services.

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Webinar - Gateway To Europe
UKTI – Financial Services Organisation (FSO)
UKTI FSO takes strategic direction from HM Treasury &
the Financial Services Trade & Investment Board (FSTIB)
and is accountable for delivering some of its initiatives.
We also have 3 principal aims:
1. To attract and retain high value Foreign Direct Investment
(FDI) into the UK;
2. To help UK based companies grow their business through
international trade; and
3. Develop and maintain relationships with existing
investors in the UK for the purposes of encouraging
further long term investment into the UK.

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Webinar - Gateway To Europe
UKTI – Government Commitment to the Sector
What is the Investment Management (IM) Strategy?
The UK Investment Management (IM) Strategy was launched in
Budget 2013 and committed the UK to improve its international
competitiveness in the IM industry.
It is the government’s job to create the right
environment and support firms to gain market
share, especially in emerging market economies
where new investors, savers and markets are
appearing.
“That is why I have established the Financial
Services Trade and Investment Board (FSTIB)-
to bring together the best that our public and
private sectors have to offer to strengthen the
UK’s performance in financial services at home
and abroad.”
- Chancellor George Osborne (2013)

8. What is the UK Investment Management Strategy
(IMS)?
The UK Investment Management (IM) Strategy
was launched in Budget 2013 and committed the
UK to improve its international competitiveness in
the IM industry.
This strategy focuses on three main components:
1. Taxation: government will work hard to
ensure a tax regime which is simple, fair and
streamlined.
2. Regulation: government will ensure a
regulatory environment that applies high
internationally consistent regulatory
standards and that remains responsive.
3. Marketing: government will work closely
with key industry bodies to carry a co-
ordinated marketing approach to all corners
of the globe.
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9. The big numbers for UK asset management
Source: EFAMA & TheCityUK
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10. Average AUM per manager & Concentration
of Top 5 managers
Source: EFAMA Asset Management Report 2015
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Webinar - Gateway To Europe
UKTI – Financial Services Organisation (FSO)
Key Messages for Investment Management from UK

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Webinar - Gateway To Europe
UKTI – Financial Services Organisation (FSO)
If you are thinking of the UK as place to do business in, with or
from, help is available to make the process easier!
A One Stop Shop Concierge Service gives you all the help you need
to set up in the UK.
1. Set up: Help navigating the process of setting up an investment management
company
2. Introductions: to the ecosystem of professional services providers and advisors.
3. Accessing market opportunities: Bespoke research.
4. Helping select the best market location
5. Tax Advice
6. Support with visas and entry into UK
7. Finding quality staff
8. Ongoing government support
Once in the UK, UKTI FSO can help your business grow internationally from the UK

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Welcome to London
Webinar - Gateway To Europe
Cordium’s inbound solutions for US Fund Managers

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The Piccadilly Line: Heathrow to the West End
Webinar - Gateway To Europe
Cordium’s inbound solutions for US Fund Managers

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Let’s simplify it a little
The Piccadilly Line: Heathrow to the West End
Webinar - Gateway To Europe
Cordium’s inbound solutions for US Fund Managers

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The Piccadilly Line: Heathrow to the West End ….…is like your Journey to being Fully Operational
Webinar - Gateway To Europe
Cordium’s inbound solutions for US Fund Managers

17. So let us begin our journey ……..
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Webinar - Gateway To Europe
Cordium’s inbound solutions for US Fund Managers

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Do I need to be regulated?
What activities require FCA regulation?
There are various examples, such as:
o Marketing, for Managed Account management services,
AIFs and UCITS
o Managing with discretion
o Corporate Finance activity
Legal advice required to confirm definitively activities
being undertaken

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What else needs to be set up?
UK tax and Financial Regulatory Reporting
People
o Employment status
o Payrolls
o Contracts and Handbooks
Structure
o LTD or LLP?
V.A.T.
o Registering
o Reclaims
Business as usual

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Baseline reporting schedule – Full-Scope AIFM: CPMI (BIPRU) Typico
What else needs to be set up?

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Preparing and submitting an FCA Application
The principal steps are:
o Determine what permissions you need
o Prepare a Business Plan
o Understand minimum regulatory financial
requirements with forecasting in FCA format
o Preparation of the application itself

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Waiting for FCA Approval
o Current waiting time for FCA Case Officer is 22 weeks.
o Which Case Officer is allocated to your application can make a
difference
o Case Officer will ask questions, responding quickly is
important, but knowing how to respond is critical since poor
responses can lose time.
o Once the Case Officer is satisfied you will be “Authorised
Subject to” a few final conditions, the most important will be
proof of capital.
o You will decide which exact day your firm will be
authorised.

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Getting FCA Authorisation
o Your firm will appear on the FCA Register, which will details
matters such as your permissions/licence, contact details,
approved persons and for what function.
o Make sure you get your MiFID passports in quickly, if required.
Otherwise you can’t do business with the rest of EU.
o You can’t apply for MIFID passports as part of your
application. You apply separately and these will be received 1
month from request. If you are an AIFM passporting you
would need to register with the regulator in each jurisdiction
you wish to market in.

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Starting Regulated Activities
Compliance calendar – Full-Scope AIFM:

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Starting Regulated Activities
Cordium can help you to deal with this:
o Compliance Infrastructure (should be in place at
authorisation)
o Compliance Monitoring
o PILOT
o ELF
o Financial and Regulatory Reporting/GABRIEL
o Annex IV service
o Projects

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Being Authorised
This is not the end of the story:
o You must keep up with all new regulations
o Maintain your infrastructure
o You must review your capital on an ongoing basis (yes daily!)
o You must undertake ongoing and appropriate training
o For Portfolio Managers there are significant AIFMD obligations
Of course there are non-regulatory activities, such as
Companies House, HMRC, and VAT filings, and annual
financial audits.

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Fully Operational
The good news is that your UK firm is fully operational.
Congratulations!

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6-9 Months
1 Month
But is there an easier way?

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Benefits of Regulatory Hosting:
o Skip the long wait for authorisation.
o Enable you to hire people with the certain knowledge that
you can start on time.
o No FCA reporting requirements.
o No FCA capital requirements.
o Compliance and Risk outsourced to experienced people.
Regulatory Hosting with Mirabella

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Regulatory Hosting with Mirabella
Mirabella by-the-numbers:
o Currently over 110 FCA Approved Persons, and over 800 since
inception
o Currently managing over $5b in Assets, for 16 mandates
o Currently has over 40 Appointed Representative firms, over
100 since inception.
o Exclusively hosting since 2004, no in-house activity
o Client facing team of 13 professionals
Mirabella has been trusted by major investors, including SWF,
major global seeding firms, and large pension funds.
Meetings in NY/CT available week of April 11th.

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Summary
Summary by Sarah Donnelly
We thank you for your kind attention

32. Questions
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You can submit your questions
using the Questions area in the
GoToWebinar console
For more information or sales enquiries please
contact sarah.donnelly@cordium.com for UK.