We have a client that is an independent financial advisor, small limited company, regulated by the Financial Conduct Authority.
We want to confirm what type of accounts should be filed at Companies House, any additional disclosure requirements etc.
Can anyone direct me to the place that will confirm this?
Thanks.
Replies (8)
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When I last dealt with one of these the distinguishing feature was that they were not able to take any size exemptions, which included exemption from audit.
I agree with John
The exclusions from the small company regime are set out in s.384 CA 2006.
I doubt that your IFA company would be subject to the EU Financial Instruments Directive (MiFID) or deal with Collective investments in Transferable Securities (UCITS), but I suspect that it might well carry on "insurance market activity" and therefore, be excluded from the small company regime, including abbreviated accounts and exemption from audit.
The vast majority ...
... of "standard" high street IFAs are no longer required to do anything different to any other small company.
But there's no substitute for finding out exactly what their authorisation is and working through the rules.
Insurance market activity
means a regulated activity
relating to contracts of insurance
written at Lloyd's.
I have a similar client who...
advises me that to carry on insurance market activity (s384 CA 2006) you would have to be the insurer, accepting the premium for taking on the insured risk.
As an IFA, my client doesn't carry out that activity and merely acts as an intermediary and it would therefore appear that his Company would not be excluded from the Small Company regime.
Or am I missing something?
Check with the client what services he is providing
If he is a "bog standard" IFA ie providing intermediary advice on pensions, investments and mortgages, then there are no specific disclosures to be made.
The requirement for all 'bog standard; IFAs to have an audit is long outdated.
A few peculiarities remain in the preparation of the accounts but that's about it. As said above, they are pretty much normal small companies now
IFAs do not require an audit unless they fall under the same requirements as any other small company.