Which firm and service should a UK investor verify?
For most people who want to check if a financial company is based in the UK, the FCA Firm Checker and Financial Services Register will be your first stop. You should use both tools to find the firm's legal identity, what permissions it has, and how to get in touch with it. Please remember that using a trading name that you recognize or clicking on a link that someone sends you in a message does not replace checking the official records.
How can you check whether a platform offers shares or a different product?
A company stock, a mutual fund that owns stock and a derivative based on the value of a stock are all distinct financial instruments. For each of these instruments, document the legal name of the product, the issuer/counterparty, the exchange where it trades, and the applicable account conditions. Do not equate exposure to a stock's price to direct ownership of the stock until you have verified this in the relevant documents.
[Table]
Research field | Document or record | Question for the comparison
Firm identity | Official FCA record | Is this the entity and service intended?
Product category | Documentation on issuer and platform | Exactly what is owned/contracted?
The cost of doing business and currency exchange costs | Current schedule of providers | What are the costs associated with the same transaction?
How do I know if the product I want to purchase is supported on my account? | Official Account Guidance and Provider Support | What is my level of account access?
Residence and personal circumstances will determine what types of tax paperwork you must submit.
[End table]
How should you compare the full cost of a hypothetical transaction?
Write a hypothetical purchase price in pounds and list each of the cost categories that your broker has disclosed. You will need to keep the dealing charge separate from the currency conversion margin and the ongoing account charge. A "0" in one of these three areas does not imply that all of the other areas are also "0". This article will not supply you with the most up-to-date broker price quotes.
Which UK-specific questions still require current verification?
The use of official and provider documentation will determine if an account is eligible, what the tax treatment is, and if it has access to specific funds. Please do not assume that Canadian account rules are applicable in the UK, nor should you consider all products listed on the US exchanges as being interchangeable. This check list does not provide any information regarding tax rates, allowances or investor protection promises for a specific type of investment.
This should be a documented list of questions you will ask before selecting an investment advisor. The purpose of this list is to provide educational background information for your use in evaluating advisors; it does not constitute a recommendation of a specific advisor or an individualized order to purchase U.S. securities.
What other questions do readers ask?
Which firm and service should a UK investor verify?
The FCA Firm Checker and Financial Services Register should be used to begin your investigation into a UK financial firm. You can find the firm's legal name, authorized services, and contact details there. Trading names that you recognize, or links provided to you via messages, cannot replace checking the actual records.
How can you check whether a platform offers shares or a different product?
A company's share, a fund that owns shares, and a derivative based on the price of a share are all different products. For each of these products, record its legal name, who issued it (or is the counterparty), where it lists and what kind of account applies. Don't assume that owning a product that allows you to profit from changes in a stock price is exactly like directly buying a share unless you have verified this by looking at the relevant documents.
How should you compare the full cost of a hypothetical transaction?
Write down an estimated purchase price for your shares in British Pounds (£) and then make sure you include each of the different cost categories provided by the firm. If there are any dealing charges, list those as a separate item from currency conversion fees and ongoing account costs. When you have a zero in one of the columns on your form, this does not indicate that all of the other columns will be zero. There are no actual broker prices included in this document.
What are the limitations of this guide?
This is a draft version of an educational research document for review by humans. It provides no individualized recommendations and makes no guarantees as to whether you will achieve your desired results. You should verify each reference with the specific claim made in the text prior to publishing, and the use of hypothetical examples does not represent data from issuers.