Membership FAQ

LBMA has 164 Member companies across 23 countries and includes the following classes: Full Member; Market Making Member and Affiliate Member. The first two classes are considered to be organisations that are directly active in the Loco London Market and Affiliate Members are generally those organisations that are active in other Markets around the world but whose activities are considered to be closely associated with the Global OTC Precious Metals Market.

Member activities are considered to include: trading, broking, shipping and storage, mining, refining, inspection and assaying, service providers, technology providers, exchanges, intermediaries, consultancy services and research. Please note, individuals cannot become Full or Affiliate Members.

Affiliate Membership of the LBMA is available to a range of international market participants, service providers, technology providers, exchanges and intermediaries. It is also open to companies that are active in functions relevant to the London bullion market like mining, inspection, assaying and consultancy related activities. Logistics and vaulting companies who are not active in the Loco London Market may also apply for this classification of membership. Refiners who are interested in applying to become an Affiliate Member need to be accredited as a GDL Refiner before doing so.

Full Members have a weighted vote at LBMA’s AGM, 3:1 compared to that of Affiliate Members. All Members have the ability to provide attestation in support of new applicants within the limitations set within LBMA Due Diligence policies. Full Members and Market Making Members have the right to put forward candidates for election to the Board but Affiliate Members may not. All Members have the right to put forward candidates to be considered for places on LBMA Sub-Committees and Working Groups. Full Members and Market Making Members are considered to be active participants in the Loco London Bullion Market by HMRC and are able to trade under the terms of the Terminal Markets Order. This tax simplification mechanism is not available to Affiliate Members.

Applicants for any class of membership will pay a non-refundable application fee of £1,000. This fee is also payable for organisations who wish to apply to re-classify to any other classification of Membership. From 1, January 2024, upon admittance to the membership, an annual subscription is payable at the rates of: £28,700 for Market Making Members, £18,400 for Full Members (Bank / Trader), £11,900 for Full Members (Other), £11,900 for Affiliate Members (Exchange) and £7,100 for Affiliate Members. These rates are reviewed every year and Members will be notified of the fee increases in advance. The fees for applicants who are successfully admitted as Members will have their first year’s subscriptions pro-rated to the month in which they are admitted.

LBMA performs checks on every application for membership in accordance with its Due Diligence Policy. Reports are produced for consideration by Committees prior to any admittance decision being taken. Periodical reviews are conducted on all Members to ensure the maintenance of standards and compliance with the Global Precious Metals Code.

There are some general guidelines:

• UK financial institutions, companies and banks, whether authorised by the FCA or passported in by the FCA (originally authorised elsewhere within the EU or EEA) must apply to become Full Members.
  
• Banks, whether based in the UK or internationally, are expected to apply as Full Members.
• International market participants, service providers, technology providers, exchanges and intermediaries should apply for Affiliate Membership.
• Companies that are active in functions relevant to the London bullion market like mining, inspection, assaying and consultancy related activities should apply for Affiliate Membership.
• Logistics and vaulting companies who are active in the Loco London Market must apply for Full Membership. Those active in other markets internationally may apply for Affiliate Membership.
• Refineries must be listed as an accredited GDL Refinery before they may apply for any classification of membership.
• GDL refiners may apply for Full or Affiliate Membership but must attain the appropriate level of attestation from 3 other LBMA Members in accordance with the requirements of each classification of membership.

Members must promptly notify LBMA if there has been a change in:

• Name.
• Registered address.
• Ownership or majority shareholding and in particular where any person becomes or ceases to be, or proposes to become or cease to be, [a controller].
• Corporate/partnership structure.
• LBMA primary contact.
• Any permission(s) or relevant exclusion(s) used by such person to carry on a regulated activity by the UK Financial Conduct Authority (or an equivalent regulator) – for example if there has been a variation or cancellation of a permission; or
• Any other particulars provided in the original application.

This notification must be in writing addressed to the Chief Executive and sent to the LBMA Office. Changes will be reviewed by the Membership Compliance Panel.

Members may, at any time, resign their LBMA membership by giving notice in writing to LBMA and shall thereupon cease to be a Member. The annual subscription fee shall be payable in full for the year during which such resignation or termination of Membership occurs. If the Member has already paid its annual subscription fees, the Member shall not be entitled to recover such payment or any part thereof from LBMA.

For more information about joining LBMA, please contact us at membership@lbma.org.uk.