To obtain authorisation, a firm must satisfy the Commission that they meet a number of conditions:
- Sufficient financial guarantees.
- Integrity, experience and professional skills of its managers.
- Sufficient resources to carry out the activity.
SAMs must have an exclusive corporate object¹ and a minimum amount of share capital, paid-up in cash (from 150,000 euros). The exact amount required will depend on the type of activity the firm intends to carry out.
All authorised firms must at all times have at least two strategic orientation and management officers (referred to as “ROSGs”), each of whom must be approved by the Commission.
Authorised firms are bound by strict rules of conduct and prudential rules, which conform to international standards. They are required to act with fairness, honesty, and to carry out their activities with due care, diligence, and competence. The Commission also pays close attention to ensuring the firm has an adequate system of internal and external controls and an effective system for preventing and managing conflicts of interest.
Firms must also apply know-your-customer measures, provide information about the way their activities are conducted, and keep proper records of services provided and transactions carried out.
1 – With the exception multi family offices.