IFA client decided he wanted to incorporate his business back in December 2013 to take advantage of a large goodwill valuations. This query isn't about valuations as we can get a third party valuation easily enough. The client is affiliated to, but most definitely not an employee of, one of the large wealth management companies.
The issue I've uncovered is that after we formed the company at the end of November 2013 the IFA has not obtained a CCL for the company nor informed the wealth management company he is affiliated to.
I understand that to trade as an IFA through a limited company the company must hold a CCL, not the individual. For a variety of reasons, mainly arising from issues getting one due to move from FSA to FCA the company didn't, and still hasn't, got a CCL.
First can anyone confirm that my understanding here is correct?
If it is I cannot see any way that we can justify moving the trade from the sole trader business into the company. Obviously off the back of this are a myriad of tax issues, not least a substantial and unexpected tax bill due in January.
Has the client simply messed up, made his bed and has to lie in it or am I missing something here?
Thanks in advance
Replies (4)
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network
The network should provide all the compliance advice. You can then stick to tax advice
Confusion
I agree there is confusion in this area.
I had one client such client who backed down from incorporating because he was informed the new company would need separate FCA registration for compliance.
I have another sole trader client who wants to incorporate as some other network members already have, but admits he doesn't know for sure potential compliance issues. He can only go by what his network deems acceptable.
My own research doesn't hasn't brought up any definitive bite-size conclusions when I would have thought this wouldn't be a rare concern.
There is no longer ...
... any such think as a CCL. And the "replacement" hasn't yet been decided upon. So I think you can cross that off your list of worries - although it does seem there are other things to worry about!