Broker Licence
An execution-focused dealer licence for firms executing client orders in securities on an agency basis — without proprietary trading or investment advice.
A Broker licence is issued by the FSC under the Securities Act 2005 and authorises the holder to execute orders in securities on behalf of clients on a pure agency basis. Unlike the Full Service Dealer, a Broker may not trade for its own account, act as a market maker, or provide investment advice in connection with transactions. This narrower scope of activity results in lower capital requirements and a more streamlined regulatory framework, making the Broker licence an efficient and cost-effective option for firms focused purely on order execution and client facilitation.
Permitted Activities
A Broker is authorised to receive and transmit client orders in securities, execute those orders on exchanges or OTC markets on an agency basis, and provide order confirmation and settlement services. Principal trading, market making, and investment advice are not permitted.
Capital Requirements
Broker licences carry lower minimum capital requirements than Full Service Dealers, reflecting the absence of principal risk. The capital requirement is calibrated to the execution-only nature of the business and client money handling obligations.
Client Money
Brokers handling client money must comply with the FSC's client money rules, maintaining segregated client accounts with approved banks and providing regular reconciliation statements. PrimeLuxe assists with the design of client money frameworks.
Order Handling
Brokers must have robust order management systems and best execution policies ensuring client orders are executed promptly and on the best available terms. Order handling procedures must be documented and made available to clients.
Clearing Arrangements
Brokers must have clearing and settlement arrangements with approved counterparties. These arrangements must be documented and disclosed to the FSC as part of the licensing application.
Compliance Framework
A Broker must maintain an AML/CFT programme, compliance officer, best execution policy, and client documentation meeting FSC standards. The compliance burden is lower than for Full Service Dealers given the absence of proprietary activities.
Ready to establish your Licence?
Our team will guide you through every step — from initial structuring advice through to incorporation, licensing, and ongoing administration.