Benefits of an asset management license and trust management for business
The transfer of assets under the control of intermediary firms is becoming increasingly popular, because everyone wants to make big profits, but devote as little time as possible to the process of earning money resulting from the launch of the turnover of invested capital.
Let’s consider the main advantages of trust management for business and from the point of view of establishing and developing your own commercial structure:
- high level of income: often even higher than with self-management. Profit depends on the qualifications of the intermediary and the period of management;
- well-established management system: such companies have extensive experience and clearly know the market situation, thanks to which they carry out all transactions on time. Often the asset owner does not have sufficient knowledge in the field, so he can make a lot of mistakes, and intermediaries are professional experts who are constantly improving their strategies;
- receiving money happens very quickly: if you urgently need an invested fund, you can withdraw it. But it’s better not to do this, because in this case you definitely won’t get any profit, and you’ll also ruin your relationship with the management organization. It is better to wait for the agreed deadlines;
- individual approach: when transferring a business under management, you will receive a personal manager who will always answer questions and keep you up to date.
The registered firm that will manage your assets is focused on maximum results. The higher the income, the more the intermediary will earn, so such companies always work on a percentage basis, and not for a fixed payment.
Our lawyers know everything about asset management and are ready to help you obtain the appropriate license to conduct officially authorized and regulated activities. We will guide you through every stage of licensing.
Trust management tasks
When concluding an agreement with an asset management intermediary, you need to specify all the goals that the entrepreneur strives for when implementing his/her business project.
The intermediary should try to get the maximum possible profit during his work. Of course, there can be no guarantees here, because it is impossible to predict fluctuations in the market. But by studying the performance of previous clients of several management firms, you can get an overall picture, compare and choose the most suitable option for cooperation.
Firm must do everything possible to preserve your assets – this is important to indicate in the contract. If, for example, your goal is to make money on the foreign exchange market, then the intermediary does not have the right to increase profits in any other way. If the management enterprise decides to buy real estate instead of currency, this is considered a violation of the contract, and the firm will have to answer for its actions in court.
It is important to choose an experienced manager and draw up a contract correctly, then you will be completely protected from losses and mistakes.
Conditions for creating an asset management institution
Before establishing a business, it is necessary to define your own specialization, that is, outline the circle of commercial structures with the assets of which the firm intends to work. Most of the firms existing on the market have a very narrow focus, so they cannot accept any type of asset.
The permissions granted by the asset management license are as follows.
- Licensed brokers have the right not only to manage assets, but also to conduct forex trading, as well as provide advice on futures and securities.
- A financial permit often has a condition that the firm must not hold clients’ assets, meaning the licensee will hire a broker or transfer the assets to a bank where they will be stored. Firms involved in management often agree to this condition, as it minimizes the authorized capital.
Persons who provide investment services, banks, insurance companies and trustees who have large shares have the right to obtain a financial permit. Hedge funds and open-end collective investment schemes or funds that have an LLC structure can also initiate the process of getting an SFC license and become professional investors.
Getting an asset management permit: requirements and general procedure
- To get this, you must first register a company in the jurisdiction where the licensing process will take place.
- You need to prove to the regulator that you have a suitable firm structure, effective rules and policies, and qualified personnel to ensure that the risks associated with the proposed activity are well managed.
- It is required to appoint directors and an auditor. Depending on the state, these may be local or foreign citizens.
- It is mandatory to submit all tax reports for the year of operation of the firm within the specified deadlines.
Specific regulatory aspects may vary depending on the jurisdiction chosen. We will help you establish a business as a financial intermediary. With our help, you can build your own commercial project as quickly and profitably as possible.
What is included in our services
Our specialists have extensive experience and offer qualified services for opening and licensing management companies in different countries.
- Getting appropriate licenses and all necessary additional permits.
- Collection, preparation and sending of documents.
- Assistance in opening bank accounts.
- Ready-made companies and licenses for sale.
- Office search and personnel selection.
- Professional consultations.
We find an individual approach to each client and are aimed at the fastest and highest quality results. Each of our lawyers is an experienced adviser.
How much does an asset management license cost?
The cost of getting a permit depends on many factors and the chosen jurisdiction, so it is calculated individually in each case. Our lawyer will provide you with a full final estimated price immediately before the start of cooperation.
Our company has been working in the field of licensing and establishing commercial structures for many years, so it has managed to gain an excellent reputation and receive a lot of positive feedback. We guarantee professionalism and find the most profitable solutions for you.
- Only experienced experts.
- Variety of corporate services.
- Experience working with different jurisdictions.
- Full support.
- Maximum results in a short time.
Our company’s specialists will help you quickly get all the required permits for the comfortable official operation of your business.