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The UK Financial Conduct Authority (FCA) recently granted Prime Factor Capital the license to manage crypto assets in the country. For those looking to diversify their portfolios with crypto assets, there is a new player in town.
In a press release announcing the development, Prime Factor Capital said that it is probably the first dedicated crypto asset manager that has been authorized by the FCA as an Alternative Investment Fund Manager (AIFM).
CEO Nic Niedermowwe expressed his excitement for getting approved by the FCA to become a licensed crypto asset firm. He said:
“This is a significant milestone not just for Prime Factor, but for the industry as a whole. Being FCA-regulated brings us under the purview of one of the most recognised financial markets regulators globally. This is particularly relevant in the cryptocurrency space, which has repeatedly captured headlines for poor operating standards and even fraudulent activity. Investors need to be able to trust their managers not only to generate returns, but also to act responsibly and in their best interest."
Furthermore, as required by the AIFM Directive, the company further announced that it has appointed a depository, which provides an additional layer of protection to investors. The newly-approved firm’s COO Adam Grimsley explained the matter in more detail.
“The robustness of a firm’s systems and processes is as important to institutional investors as an experienced management team and outstanding track record. Full-scope AIFMs are subject to heightened transparency, disclosure and reporting requirements, in addition to a number of other obligations. We are pleased to be able to offer institutional investors with a suitable investment vehicle to deploy capital to this emerging asset class with its unique risk-return profile,” Grimsley said.
Earlier in May, the FCA found the reported number of crypto and foreign exchange scams to have more than tripled in the last financial year. This week, the regulator has proposed a ban on the sale of crypto-derivatives to retail consumers.
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