Our regulatory status

Ethex aims to help investors better understand both the risks and the rewards of ethical investment and in achieving this, we expect to meet the highest standard of governance and to adhere to both the rules and the spirit of the financial and legal regulatory systems.

Ethex is registered with HM Revenue and Customs for Money Laundering Regulation. This is in order that it can receive money from investors and pass it on to the businesses. All money we receive from investors is held in a separate account, meaning that it is separated from Ethex's own funds, and it is never held for longer than one business day. All directors have undertaken a 'fit and proper test', as part of the HMRC registration process. 

Ethex is not required to be authorised by the Financial Conduct Authority in so far as it provides information on or arranges deals in investments. This is because it is an Enterprise Scheme, which is exempt from regulation in arranging financial deals when not for pecuniary gain, as specified in the Financial Service and Markets Act 2000 (Exemption) Order 2001 paragraph 40. 

For more details on the Enterprise Scheme exemption see the relevant section of the Financial Services and Markets Act 2000 and subsequent amendments

Ethex considers that it meets this exemption because:

  1. It has as one of its principal objects in its articles the promotion and encouragement of one or more areas of commercial activity or enterprise in the United Kingdom
  2. It does not act for pecuniary gain, as it is a not-for-profit organisation, levies charges on investors and businesses designed only to cover costs, pays modest salaries and is funded by charitable foundations
  3. It does not act on a professional basis, as its activites are not for commercial gain and are not on a large scale, as specified in the FCA's guidance.

Ethex’s board of directors have discussed its Enterprise Scheme exemption status with the FCA, and the board regularly reviews its regulatory position. Our intention is to apply for FCA authorisation if and when it becomes clear that Ethex is likely to develop to the point where our exemption outlined above might cease to apply.

Please note that Ethex is not authorised to give investment advice to investors.

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https://www.ethex.org.uk/savings--investments_16.html

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