BrickVest, the London-based online real estate investment marketplace, has been granted a full-scope FCA Alternative Investment Fund Managers (AIFM) license with cross border passporting rights in the EU by the UK Financial Conduct Authority.
The FCA license, the first granted to an online real estate investment platform in Europe, will provide BrickVest with an EU-wide passport to market and manage a wide range of products across all member states.
It will also enable the firm to grow beyond the €100m assets under management limit that currently applies to small managers. The license also brings enhanced security to BrickVest investors with the introduction of a regulated depositary, extensive disclosure and governance requirements, increased capital requirements, independent valuation and best practice internal operating procedures.
The regime, which came into force in 2011, lays down rules for the authorisation, operation and transparency of managers of Alternative Investment Funds (AIFs) in Europe. The license brings increased investor security to the way that alternative funds are managed and operate, contributing to the stability of the financial system.
Currently medium-sized real estate managers and most electronic investment platforms operate under sub-threshold AIFM or arranger licenses, which restrict their range of activities and size and provide no access to EU passports to market or manage investment products or AIFs across Europe.
BrickVest enables European investors to commit as little as €1,000 to institutional real estate that previously was only accessible to large institutions such as pension funds, insurance companies and large family offices. It also increases liquidity of real estate assets through its secondary market.