Section 19 of the Financial Services & Markets Act 2000 (FSMA) states that, “no person may carry on a regulated activity in the United Kingdom, or purport to do so, unless he is an authorised person, or he is an exempt person in relation to that activity.” This is known as the ‘General Prohibition’, and prohibits any person or institution from carrying out regulated activities, as described in the FCA’s Handbook under PERG Annex 2.
The nature of the activities that will take place on skew.’s trading platform are regarded as ‘Regulated Activities’ and therefore require specific permissions from the UK Financial Conduct Authority (“FCA”). skew. has obtained such permission by virtue of its status as an Appointed Representative ("AR") of Kyte Broking Limited (itself deemed Skew Ltd's Principal). The Appointed Representative regime makes it possible for firms, which are not solely authorised by the FCA, to carry on certain regulated activities under the supervision of an FCA authorised firm.
As its Principal, Kyte Broking retains supervisory oversight over the regulated activities of skew.. skew. is subject to Kyte Broking’s policies and procedures and makes accessible to Kyte all such information required for them to meet their regulatory obligations as a Principal. Of particular relevance, potential customers will be subject to the AML, and in particular the KYC due diligence, policies of Kyte. Existing clients of Kyte Broking may in turn be in scope for expedited KYC, provided that the relevant approvals are up to date. This is subject to the discretion of both Kyte and skew. and shall be determined on a case by case basis.
For further information about the FCA’s Appointed Representative Regime, as well as skew.’s regulated status, please refer to the following: