Management Company set-up

As we have assumed that the investment management services will be provided from the UK for the purpose of this brief, it will be necessary to establish a UK business. This will generally take corporate form, this is the entity that will contractually engage to provide either investment management or investment advisory services.

The business will enter into a contractual relationship with the fund and receive fees generally in relation to the amount of funds under management together with a performance-related element.

The setting up of the management company will be dominated by 2 demands – regulatory and fiscal – which are in constant conflict with a third – the manager’s convenience. The manager will need to make certain trade–offs.

The principal steps that need to be followed are:

• Incorporation of a UK business and associated legal and tax issues
• Set-up of the infrastructure of the business
• Authorisation to conduct investment business in the UK