Buy-side acquisition · United Kingdom
Why a UK forex / CFD broker
The Financial Conduct Authority supervises retail and professional CFD distribution under the Financial Services and Markets Act 2000 (FSMA). An FCA-authorised investment firm carrying the Regulated Activities Order Article 14 permission (dealing in investments as principal) is the operative form of what acquirers call a “UK forex licence”. There is no separate forex statute, and any firm advertising one is mis-describing the regime. For an acquirer, the value sits in the FCA permission set itself, the Threshold Conditions standing, and the firm’s existing CASS 7 client-money infrastructure.
The UK is a Tier-1 venue for several reasons. The FCA imprint carries weight with banking counterparties and prime brokers in a way that offshore licences do not. Permanent retail CFD restrictions under PS19/18, in force since 1 July 2019, set the 30:1 retail cap (down to 2:1 by asset class) and the 50% margin-close-out rule under COBS 22.5. Those rules narrow the addressable retail market but stabilise the firms that operate within them; supervisory enforcement against operators steering retail clients into high-margin offshore mirrors has intensified through 2025. A clean UK firm with a documented PROD 3 product-governance file and conservative client-categorisation under COBS 3.5 is therefore worth materially more than the same permissions in a stressed entity.
Permission set
What the licence permits
The headline permission for a forex / CFD broker is dealing on own account under RAO Article 14, which triggers the £750,000 permanent minimum capital requirement (PMR) under MIFIDPRU 4.4. A firm restricted to reception and transmission of orders or matched-principal models can sit at the £150,000 PMR tier, and an introducing-broker arrangement at £75,000. These are the three floors set by the Investment Firm Prudential Regime that took effect 1 January 2022. The binding constraint is the higher of the PMR, the Fixed Overhead Requirement (one quarter of preceding-year relevant expenditure) and the K-factor calculation; in practice the FOR governs once a firm has any real cost base.
Client-money handling sits under CASS 7: segregated accounts at approved banks, daily internal-client-money reconciliation, and the CASS Resolution Pack maintained current. The Internal Capital Adequacy and Risk Assessment (ICARA) document and a credible wind-down plan are expected at all times. Supervisory engagement is not a once-a-year event. The FCA expects firms to demonstrate ongoing fit with the Threshold Conditions and to notify under Principle 11 on material changes.
Acquisition coverage
What we broker here
Our UK book covers FCA-authorised investment firms with active dealing-on-own-account permission and a clean CASS standing. Some carry permissions wider than retail CFDs (portfolio management or operator-of-an-MTF add-ons, for example), which can be useful if the acquirer’s business plan stretches beyond the retail CFD scope. We do not list entities with unresolved supervisory correspondence or CASS audit qualifications; the pre-vetting filter is what makes the s178 path predictable.
Acquirer profiles we work with: market-making CFD groups consolidating an EU-passporting failure point with a UK presence; offshore brokers re-domiciling client books to a regulated home; payment and e-money groups adding a CFD venue alongside an existing UK or EU permission stack. Diligence gates we run before listing: regulatory standing letter or equivalent indication, banking continuity (the operative current account, the CASS client-money bank, prime-broker relationships) and FTE retention modelling. The FCA’s Senior Managers and Certification Regime (SMCR) means a thin compliance team is a transition risk in itself.
Closing path
Acquisition process
The structuring choice (share purchase versus carve-out of permissioned subsidiary) sets the s178 path. Once the FSMA Section 178 change-of-control notification is filed, the FCA has 60 working days from completeness to assess, with up to 20 working days of interruption available if it asks for further information. Supervisors typically focus on the controller’s fit-and-proper standing, the business-model continuity, the financial soundness of the acquirer and the proposed governance changes. Pre-filing engagement with the case officer materially shortens the interruption risk. Our process and timeline framing for buy-side mandates lives at the engagement section.
Mandate posture
Why Cadena
- Buy-side only. We do not represent sellers on the same mandate. That single fact reshapes which entities reach your desk and how we negotiate price for you.
- Regulator-surface fluency. Our diligence packs are written to the FCA’s actual review templates (Form A for individuals, Section 178 notice for controllers, COBS 3.5 client-categorisation file, PROD 3 governance evidence), not to a generic data-room checklist.
- Banking continuity first. A UK forex licence without the operative bank account and CASS client-money relationship is a six-month rebuilding exercise. We confirm continuity before the entity reaches the long-list.
Related UK mandates: UK Authorised E-money Institution · UK Authorised Payment Institution · global coverage.
Acquirer FAQ
FAQ
What is a UK forex licence and what does the FCA actually authorise?
There is no standalone “forex licence” in UK law. What acquirers mean by the phrase is an FCA-authorised investment firm permission set under Part 4A of the Financial Services and Markets Act 2000, with Regulated Activities Order Article 14 (dealing in investments as principal) or Article 25 (arranging deals) covering forex / CFD activity. The FCA authorises the firm, sets its permissions and supervises against the Threshold Conditions, the Conduct of Business Sourcebook (COBS), the Client Assets Sourcebook (CASS) and the Senior Managers and Certification Regime.
Is there an FCA-issued “forex licence”?
No. The FCA does not issue a product-named licence. Search results for “FCA forex licence” land on FCA-authorised investment firms with Part 4A permissions plus the RAO activity codes that cover CFD trading. When this site uses “UK forex licence” it refers to the operative permission set, not a standalone instrument. The distinction matters at change-of-control: the s178 notice attaches to the firm and its controllers, not to a product line.
What are the requirements for a UK forex trading licence?
For dealing on own account: £750,000 permanent minimum capital under MIFIDPRU 4.4, plus the higher of the Fixed Overhead Requirement (one quarter of preceding-year relevant expenditure) and the K-factor calculation. Beyond capital: the Threshold Conditions (location, effective supervision, suitability of management, adequate resources), a working ICARA and wind-down plan, CASS 7 segregation if client money is held, PROD 3 product-governance evidence, COBS 22.5 retail-cap and margin-close-out compliance for retail CFDs, and SMCR senior-manager allocations.
Is a UK forex broker licence for sale?
Yes, through us, on a buy-side mandate. Our UK book carries FCA-authorised firms with dealing-on-own-account permission and resolved CASS standing. We list only entities that pass our pre-vetting: regulatory standing indication, banking and prime-broker continuity, FTE coverage of senior-manager functions, no live enforcement or supervisory correspondence. Pricing is set by the firm’s specifics; we do not publish list prices. Send a brief and we open a short list against your business plan.
How does the s178 change-of-control approval work?
Section 178 of FSMA requires anyone acquiring or increasing control of an FCA-authorised firm to notify and obtain approval before the change. The FCA has 60 working days from a complete notification to assess, and may interrupt the clock for up to 20 working days to ask for further information. In recent practice supervisors focus on the controller’s fit-and-proper standing, source-of-funds clarity, business-model continuity and proposed governance changes. Pre-engagement with the case officer is the single highest-impact step in shortening the assessment.
Is a UK forex brokerage for sale at a known price?
Prices vary substantially with the permission set, the client-money book size, the banking relationships in place and any CASS or supervisory history. A firm with active permissions and clean banking commands a meaningful premium over a dormant shell that needs a Voluntary Application for Imposition of Requirement (VREQ) refresh. We negotiate price against the s178 risk profile rather than against a public sticker.
Open a UK forex / CFD mandate
Buy-side only. We work the s178 path with you from indicative offer through FCA approval. Send a brief covering business plan, controller details, and target permission set, and we return a short list within the week.
