This information is provided for information only and must not be considered as investment advice. You should seek professional investment advice before making any investment decision.

Understanding MGTS as an Authorised Corporate Director (ACD)

Key Questions Answered

For Financial Advisers and Investment Professionals. 

Understanding MGTS

MGTS is a trading style of Margetts Fund Management Limited, a UK-based independent/host Authorised Corporate Director (ACD) and Authorised Fund Manager (AFM).

For the purposes of this page, MGTS will be referred to as an Authorised Corporate Director (ACD).

As an FCA-authorised ACD with over 20 years’ experience supporting third-party fund sponsors, MGTS is responsible for the governance, operation and oversight of UK authorised funds.

This page answers common questions from financial advisers, intermediaries and fund sponsors about how an ACD operates in practice, including governance responsibilities, investment oversight and fund structures. 

What does an Authorised Corporate Director (ACD) do?

An independent/host Authorised Corporate Director (ACD) establishes, operates and oversees UK authorised funds on behalf of fund sponsors.

This includes responsibility for:

  • Fund governance and oversight
  • Regulatory compliance
  • Risk management and controls
  • Oversight of delegated investment managers
  • Ensuring funds are operated in the best interests of investors

How do I choose an independent/host Authorised Corporate Director (ACD)?

Selecting and working with an independent/host ACD is a significant decision for fund sponsors. The role extends beyond operational support and requires robust governance, regulatory oversight and the establishment of a strong, long-term partnership.

When selecting an independent/host ACD, fund sponsors should consider:

  • Experience acting as an ACD
  • Strength of the governance framework
  • Operational infrastructure
  • Ability to support long-term fund operations

MGTS supports the governance, operation and oversight of UK authorised funds for third-party sponsors, providing a structured and regulatory-led approach.

How long have you been operating as an ACD?

MGTS (Margetts Fund Management Limited) has operated as an independent/host Authorised Corporate Director (ACD) since 2001 and has provided third-party fund services since 2003. MGTS has supported a range of UK authorised fund structures over this period. 

What is an independent/host Authorised Corporate Director (ACD)?

An independent/host Authorised Corporate Director (ACD) establishes and operates UK authorised funds for third-party sponsors. Typically, investment management is delegated to the sponsor or to another third-party manager outside its corporate group. The ACD remains responsible for governance, operations, controls and oversight.

At the heart of this role is a responsibility to act in the best interests of investors, working to protect, support and treat them fairly at every stage.

What fund types do MGTS support?

MGTS supports UK authorised fund structures and operates across:

  • UCITS (Undertakings for Collective Investment in Transferable Securities)
  • Non-UCITS Retail Schemes (NURS)

MGTS focus on UK authorised retail funds, typically distributed via financial intermediaries, such as financial advisers, working with a range of fund sponsors. MGTS operate funds for:

  • Vertically integrated financial institutions, unitising their investment services
  • Financial advisers looking to establish outsourced unitised investment services
  • Asset managers and fund management firms

MGTS also operate across a range of asset classes including:

  • Collective investment schemes
  • Equities/shares
  • Fixed income
  • Bonds
  • Alternatives (including property and commodities)
  • Structured products and derivatives

Funds may also be structured to delegate to multiple underlying managers, including split or segregated mandates. MGTS’ approach is flexible and can be tailored to sponsor requirements.

Why is choosing the right ACD important?

Choosing an Authorised Corporate Director (ACD) is an important decision that should extend beyond cost considerations. The ACD is responsible for the governance and operation of a fund and, alongside the depositary, plays a key role in protecting investors and ensuring the fund operates in line with regulatory requirements.

As an FCA-authorised independent/host ACD, MGTS is accountable for the funds it operates, with investor outcomes central to its approach. For this reason, MGTS are selective when entering new sponsor relationships, ensuring alignment on governance standards, long-term objectives, and a shared commitment to acting in the best interests of investors.

How does MGTS approach new sponsor relationships? 

In addition to regulatory suitability, MGTS consider factors such as:

  • Alignment of values
  • Strength of working relationship
  • Operational readiness
  • Commitment to governance standards and long-term sustainability

Following initial discussions, the relationship is assessed to determine whether it is an appropriate fit and can be delivered in a way that aligns with MGTS’ governance framework and supports investor protection.

What are the costs of using an independent/host Authorised Corporate Director (ACD)?

The costs of using an independent/host ACD will depend on the structure and requirements of the fund, but typically include:

  • Ongoing ACD fees, covering governance, oversight and operational services
  • Third-party costs, including depositary, custodian, auditor and regulatory fees

MGTS provides both Fund Accounting and Transfer Agency services in-house, supporting oversight and operational control. Get in touch with MGTS’ Sponsor Relations team to find out more.

What questions should sponsors ask when choosing an independent/host Authorised Corporate Director (ACD)?

MGTS recommends focusing on:

  • Governance and regulatory record
  • Financial resources and capital
  • Operational capability and controls
  • Sustainability and long-term alignment
  • Approach to investor protection and acting in investors’ best interests

Do MGTS take a long-term approach to sponsor relationships?

Yes. MGTS take a long-term view and are careful about who they work with, with the intention of protecting investors, existing sponsor brands and supporting sustainable partnerships.

What sits at the centre of your governance framework?

MGTS’ governance framework is led by its Board of Directors, which includes executive and independent non-executive directors with experience in operations, strategy and governance. Meet the MGTS Senior Leadership team.

Why does independent non-executive oversight matter for an Authorised Corporate Director (ACD)?

Independent non-executive directors provide support and challenge, helping to ensure governance remains effective and proportionate. 
This is particularly important in independent/host ACD models, where investment management may be delegated and conflicts of interest may arise. Independent non-executive directors have a duty to act in the interest of investors above all other stakeholders.

Do independent/host Authorised Corporate Directors remain responsible when investment management is delegated?

Yes, the ACD remains responsible and is accountable to investors.
While day-to-day investment management decisions sit with the appointed investment manager, the ACD retains responsibility for:

  • Oversight and governance
  • Monitoring and challenging delegated investment managers
  • Ensuring appropriate controls are in place to protect investor interests

What do you mean by co-manufacturing, and when might this be appropriate?

Co-manufacturing refers to an arrangement where MGTS works alongside a fund sponsor or investment manager in the design of a fund or product. Under Consumer Duty:

  • MGTS (as the ACD) and the sponsor may be considered co-manufacturers
  • Roles and responsibilities are defined in a formal agreement

MGTS retains ultimate responsibility. However, fund sponsors may be contracted to support areas such as:

  • Product design
  • Investment manager selection
  • Distributor oversight and target market identification

All parties involved must ensure that potential negative outcomes for investors are mitigated and that regulatory obligations are met.

What does the Model Management service include?

MGTS’ Model Management service separates investment decision-making from portfolio implementation. 
The delegated investment manager provides a model portfolio, and MGTS is responsible for implementing that model within the fund. This includes:

  • Rebalancing the portfolio in line with the model
  • Monitoring cash flows and liquidity
  • Executing and settling deals
  • Reconciling positions and maintaining accurate records
  • MGTS provides reporting to the delegated investment manager

This service applies to fund of fund structures, with scope for some transferable securities, such as investment trusts and gilts.

As an Authorised Corporate Director, how does MGTS oversee delegated third-party investment managers?

MGTS applies structured oversight consistent with regulatory expectations, including:

  • Product design
  • Due diligence
  • Monitoring and governance oversight

Monitoring and governance oversight includes ensuring funds:

  • Meet regulatory investment and borrowing limits
  • Remain aligned to the prospectus/mandate
  • Align with investor expectations
  • Maintain appropriate liquidity and risk profiles

Formal reporting includes quarterly and annual reviews, which are provided to MGTS’ Investment Risk Committee. This is independently chaired by an experienced investment professional. 

Combining all of the above, an annual Assessment of Value (AoV) is created, which is then summarised and disclosed publicly, in the fund’s report and accounts.

What is MGTS’ capital requirement as an independent/host Authorised Corporate Director, and how do you manage capital prudently?

MGTS conducts an annual Internal Capital and Risk Assessment (ICARA), combining the risk assessment with long-term financial forecasts covering a minimum of five years.

This includes: 

  • Stress testing under multiple scenarios
  • Assessment of orderly wind-down costs
  • Review of capital and liquid resources against minimum regulatory and internal requirements

This approach combines regulatory limits set by the FCA with MGTS’ own internal assessments. A summary of MGTS’ capital position can be found on the website here.

Why is operational capability important when selecting an independent/host Authorised Corporate Director (ACD)?

Operational weaknesses can create risks for investors and may also lead to reputational impact for sponsors. Operational resilience and service quality matter alongside governance and capital strength.

What services can MGTS provide?

MGTS’ core services include:

These services are usually delivered in-house, allowing MGTS to maintain oversight of quality, consistency and operational processes. You can find more detail on each service on their respective service pages.

As both an Authorised Corporate Director (ACD) and Authorised Fund Manager (AFM), what additional services does MGTS provide as part of Fund Management?

As part of the Fund Management services, MGTS can also provide:

  • Trade execution and settlement
  • Model Management
  • Collective Investment Scheme (CIS) account openings
  • Appointed Investment Adviser (IA) support

Can MGTS support a new fund launch?

Yes. Sponsors can contact MGTS to discuss launching a fund. MGTS supports fund sponsors through both pre-launch and post-launch stages, including regulatory, operational and governance requirements.

MGTS has a strong track record of launching UK authorised funds. The Sponsor Relations team will work with you to understand your objectives, outline key considerations and help determine an appropriate approach. If you are considering a fund launch, get in touch to start a conversation. 

Can MGTS support fund transfers (change of ACD / host operator)?

Yes. MGTS can support the transfer of UK authorised funds and change of Authorised Corporate Director (ACD)/host operator. As an independent/host Authorised Corporate Director (ACD), MGTS work with sponsors to manage the operational, regulatory and governance requirements involved in the transition. Please get in touch to discuss your specific requirements.

What information do you typically need to scope a launch or transfer?

Usually, MGTS will ask about the following:

  • Fund objectives and strategy
  • Target investors and distribution
  • Proposed investment manager and delegates
  • Service provider set-up
  • Operational readiness and documentation
  • Additional MGTS services (for example, Model Management)

What are typical timelines for launching or transferring a UK authorised fund?

Timelines vary depending on the structure, documentation, service provider arrangements and regulatory engagement.

In most cases, launches and transfers are assessed individually and can take several months. As an independent/host Authorised Corporate Director (ACD), MGTS can provide an indicative timeline once the proposal has been discussed and understood. 

Does MGTS have a dedicated point of contact for sponsors?

Yes. MGTS has a dedicated Sponsor Relations team to support sponsors pre- and post-launch, including queries and ongoing support. The Executive team works closely with the Sponsor Relations team and acts as an escalation point when necessary.

Who does MGTS typically work with?

As an independent/host Authorised Corporate Director (ACD), MGTS supports: 

  • Third-party fund sponsors
  • Investment managers
  • Wealth managers
  • Financial planning firms
  • Model Portfolio Service providers

MGTS also provides services to advisers and investors through the funds operated.

What should advisers and investors expect from an independent/host Authorised Corporate Director (ACD)?

At a high level, an independent/host Authorised Corporate Director (ACD) is responsible for the product design, fund governance and ensuring the fund operates within applicable rules and expectations of investors, with the depositary providing independent oversight of the ACD.

What role does the depositary play?

The depositary provides independent oversight of a fund and the activities of the independent/host Authorised Corporate Director (ACD), helping to protect investors.

Its responsibilities typically include:

  • Safekeeping of the fund’s assets
  • Oversight of cash flows
  • Monitoring the ACD’s operation of the fund to ensure it complies with applicable rules

The depositary operates independently from the ACD, providing an additional layer of governance within the UK authorised fund structure.

Do you provide investment advice to investors?

No. The content on this site is provided for information only and should not be considered investment advice. Investors should seek professional advice before making any investment decisions.

How does MGTS approach sustainability?

Sustainability for MGTS is about long-term responsibility, resilience and trust. MGTS focus on sound governance, prudent risk management and building lasting relationships with fund sponsors, advisers and investors. 

What does it mean that MGTS is a certified B Corporation?

MGTS (Margetts Fund Management Limited) is a certified B Corporation, recognising its commitment to high standards of governance, accountability and responsible business practices.

B Corp certification reflects how MGTS operates as a business, including its approach to risk management, oversight of its activities, and consideration of the interests of investors and other stakeholders.

It does not relate to the performance of any funds MGTS operate. Learn more about MGTS’ B Corp certification. 

How should I start a conversation with MGTS?

If you are considering launching a fund, transferring a fund, or would like to understand how MGTS’ independent/host Authorised Corporate Director (ACD) model operates in practice, please contact the MGTS team.

Important Information

MGTS is a trading style of Margetts Fund Management Limited. The information on this page is for investment professionals only and must not be considered investment advice. Margetts Fund Management Limited is authorised and regulated by the Financial Conduct Authority (FRN:208565). Registered in England and Wales No. 4158249. Registered Office: 1 Sovereign Court Graham Street, Birmingham, B1 3JR.