Legal Disposition Guide

Explore the legal framework and processes for Capgemini Finance Service Ltd's disposition and compliance.

Legal Disposition for Operating Without FCA Authorization

General Advice and Educational Content

Under FCA guidelines, firms are not required to be authorized to provide general financial information or educational content. Capgemini Finance Service Ltd can offer generic financial planning and information services, which can include:

• General market overviews

• Primary financial education on asset classes like cryptocurrencies

• High-level explanations of blockchain technology and its application

• Tools or platforms to help clients make their own decisions without providing specific recommendations

As long as no personalized investment advice or specific recommendations to buy or sell financial instruments are given, these activities fall outside the scope of FCA-regulated activities.

Investment Intermediation Services

Under FSMA and FCA rules, investment intermediation services that provide introductions or facilitate connections between clients and regulated firms do not require FCA authorization. As long as Capgemini is not involved in executing transactions or handling client funds, it can operate as an intermediary. For example:

• Connecting clients to third-party, FCA-regulated investment platforms.

• Offering non-advisory guidance on how to use investment platforms or execute trades.

Corporate Advisory Services (Non-Regulated Activities)

Corporate advisory services that do not provide personal investment advice or conduct regulated activities (e.g., dealing in investments or managing investments) can fall outside FCA regulation. These services include:

• General business planning for clients

• Offering strategic advice on operational efficiencies and blockchain integration

• Helping businesses assess the overall market environment without advising on specific financial products

This could include advising businesses on how to leverage blockchain technology or assessing risks and benefits of crypto assets in general without giving specific financial advice related to securities or investments.

Cryptocurrency and Digital Assets

The regulation of cryptocurrencies in the UK is still evolving. Currently, trading in cryptocurrencies or acting as a marketplace for crypto-assets may not require FCA authorization, provided the assets do not fall under the definition of regulated financial instruments (such as securities or derivatives).

However, the FCA has introduced a crypto-asset registration regime under AML (Anti-Money Laundering) rules, so any activities involving the exchange of cryptocurrencies or custodial services for crypto-assets may require registration for AML purposes, though this is different from full FCA authorization. As long as Capgemini is involved in proprietary trading or buying and holding crypto-assets for its own purposes, it likely does not need FCA authorization for these activities.

Consultation and Planning Services

Consultation and planning services that offer general financial information or guidance on market strategies without recommending specific investment products or giving specific instructions can operate without FCA authorization. Capgemini can focus on providing:

• Strategic advice about market trends, blockchain technology, and cryptocurrency developments

• Business and financial planning that involves helping clients understand the risks and potential benefits of different market trends without advising on specific securities or investments

Exemptions Under the Financial Promotions Order (FPO)

Under the Financial Promotions Order (FPO), Capgemini could promote certain financial services without requiring FCA authorization if they qualify for exemptions. Examples include:

• Promoting investments to high net-worth individuals or sophisticated investors who understand the risks involved in financial transactions and do not require FCA protections.

• We are providing non-personalized information to potential investors to help them make their own decisions.

Execution-Only Services

If Capgemini chooses to facilitate client transactions, it could adopt an execution-only model, meaning that it provides platforms or tools for clients to execute their trades without advice. Under this model:

• Clients would make their own decisions based on general information provided by Capgemini.

• Capgemini would not be responsible for advising or making recommendations on specific trades.

Compliance with the Financial Services and Markets Act (FSMA) 2000

Capgemini Finance Service Ltd must ensure that it does not engage in regulated activities defined under FSMA, such as:

• Managing investments on behalf of clients.

• Providing personal investment advice or recommendations.

• Dealing in investments as a principal or agent.

As long as Capgemini focuses on providing general information, consultation, and proprietary trading for its benefit, it can operate outside the FCA’s regulatory perimeter.

Capgemini Finance Service Ltd can legally conduct its business in the UK without FCA authorization by focusing on:

• We are providing general, non-personalized financial advice and educational content.

• We are offering corporate advisory services without giving personalized investment recommendations.

• Engaging in crypto asset trading for its account and complying with AML regulations if necessary.

• They act as an intermediary by introducing clients to FCA-authorized firms without executing transactions on their behalf.

Adhering to these rules can help Capgemini’s business model remain compliant while still delivering valuable services in the financial and digital asset sectors.

For legal inquiries, please reach out to us directly.