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'Prime Managed': Explained.

You may be familiar with the idea of 'discretionary' and 'execution only' within the context of stock trading and asset management. Yes, we have appropriated the terms and rather crudely shoe horned in foreign exchange; however, we do believe both in the strength of these packages as easily understandable service wrappers and in the idea that demonstrating our familiarity with the terminology of our target market (as far as referral business is concerned) a la the wealth management sector is something of a mandatory minimum if we want to keep our coveted position as it's go to FX platform.

To offer what we call a 'Prime Managed' package, in the context of FX, we have to be confident that when presented with a given objective and a particular client profile, we can foresee and anticipate both the way in which the client might prefer for us to handle the pricing, booking and paraphernalia (banking details and clearance times etc.) that go into getting money from one place to another as well as how we, as a solutions provider dealing with just what might be one aspect of a larger transaction, fit into the wider context of a matter. A firm that prides itself and relies so heavily on its sensitivity to the sectors from which it courts business cannot afford to misjudge, overlook or slow up the holistic progress of a matter. Therefore, Prime Managed client dealing is as much about assuring our partners that we have worked out precisely what needs to be done and are certain we can deliver, as it is about making things easier and less stressful for the registered client.

If one's client is buying a property funded from a foreign currency then the conversion (essentially, the calculation of a margin, the receipt and onward transmission of funds) is quite straightforward...what is difficult is influencing and pushing through the moving parts - for instance, making sure the client pays funds by the appropriate cut off times or ensuring the receiving solicitor has access to and in fact understands the use of an MT103 message so that, should funds not appear when expected, the solicitor is in a position to chase effortlessly because we have thought ahead.

Many FX firms do not take into account the bigger picture. They are purely focussed on securing the deal and therefore overlook the hassle the client might have to go to to fund a transaction and consider it the problem of the recipient if funds do not appear when expected...and this is what separates not only Prime Cap from our competitors, but, our Fully Managed offering from any of the other bespoke solutions or off-the-shelf wrappers we carry.

Identifying a client as a beneficiary of a Prime Managed service makes it easier for our teams to quickly and confidently apply the necessary approach. It truly is a service offering that relieves the client of arduous question asking. We guide and instruct in a far more forensic way, but, motivated by a commitment to divest the client of any of the mundane concerns, practical and conceptual, that tend to animate a foreign currency transaction.


PRACTICALITIES: what do you get as a Prime managed client?

Whether it's during our initial consultations with you or as a result of you expressly alluding to a preference we can usually work out whether or not what we have to do could be called full management of your matter.

A day in the life of a fully managed client basically involves you emailing, texting or calling our dedicated trading team (or indeed directly messaging you selected trader) on with something akin to the below:

'J' is a Prime Managed client and periodically transmits funds to Ireland where one of his businesses has an office.

On receipt of a message like this Ben, or another one of the team, will immediately buy €10,000. 'J' trusts us to provide him with the same competition on the rate so much so that he doesn't even want us to quote for him.

He Knows that within a matter of minutes he will receive an email from Ben confirming the GBP cost and re-confirming the details of the segregated client account he has paid into before.

We have already pre-populated J's preferred bank details in line with a pre-defined list of transactions he asks us to execute. Were his email to have deviated materially from his usual pattern then our team would see this and seek to confirm the authenticity of the request by calling J.

Our dealers are the first line of defence against unscrupulous high jacking of an individuals email, but it is also important to stress that J has not lodged any money with us. Therefore, no money will be released to the usual beneficiary until such a time as GBP appears from a recognised account to fund the transaction.

J's accountant can login to Prime Cap Online and access statements for things like J's self assessment tax return; alternatively we can simply provide these on request. So, in a very real sense, the clients role in this type of package is purely one dimensional - making sure settlement reaches us promptly.

Furthermore, clients like J are very welcome to hold money 'on account' with us. They can pre-fund a regular transaction if they wish.

In this instance J wouldn't even need to send us funds...we would simply deduct from his standing balance.



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