Do I need to be regulated by the FCA?

[random12345]

I'm going to ask IB again to make sure I can do that. But anyway, my friend won't sue me for such small amount of money. Even I lose all these money

Remember to ask for quotes from the legislation.

 

[Purple Brain]

Why's that? He's just taking money off friends - if anything it's them that need to worry in case they are becoming bona fide commercial lenders, which they won't be unless they tend to make a loan a day etc etc.

Does that mean if I could convince assorted morons to let me trade their money all I'd have to do is get them to offer me an unsecured loan for a fixed rate and term in writing and the FCA would be perfectly happy with that arrangement?

 

[Purple Brain]

But anyway, my friend won't sue me for such small amount of money. Even I lose all these money

You might want to print that off and pin it on the wall. If it's such a small amount, why are you bothering considering all the extra potential hassle?

 

[random12345]

Does that mean if I could convince assorted morons to let me trade their money all I'd have to do is get them to offer me an unsecured loan for a fixed rate and term in writing and the FCA would be perfectly happy with that arrangement?

Yes - so long as the provision that you will be covering this return with trading is not a clause of the contract. If it's a private loan for any purpose then it's outside of the regulated activities framework. It is no different than borrowing from your bank with the "other" option selected.

Most people can't convince people to loan them large amounts of money without it being agreed as some form of fund or joint venture however.... Alex Hope managed to get money out of people, but that was with an agreement to trade it directly, which is why he's now being waterboarded in Liberia.

A traditional loan agreement simply says you will pay back the balance with x amount of interest. Whether you do this by way of setting up an escort agency or trading it in your own account is not relevant as the loan is your personal liability and not managed money.

 

[terryzz5]

...............

 

[Purple Brain]

Does your friend need anyone else to loan money to to test trading ideas? I've just come up with a really good one.

 

[random12345]

To my friend, these money is just a small amount as he's wealth. And he provides these money just for testing new trading ideas. But to the normal people whose mainly income is just a fixed salary, these money is a lot.

150 grand..........

Why on earth do you need this depth of capital in a leveraged account if you're basically still starting out? How many cars will you be exposed at once?

Anyway, you DEFINITELY need total agreement from IB, a proper contract drawn up with your friend about zero recourse on the money and you might even consider engaging a lawyer to draw up a bespoke agreement. I hope you are exaggerating the figure because you sound way out of your league - anyone willing to lend this money on a whim has to be dodgy - why doesn't your friend want to see all the legal particulars?? Is this a first loss arrangement??

Having a high court sheriff come and take your car won't improve your day.

 

[terryzz5]

.............

 

[Purple Brain]

oh man, I've been working with him for many years.

But I thought you'd be looking for a job for the last 3 years - how can you have been working with him? None of this rings particularly true so I'll bow out.

 

[terryzz5]

...............

 

[terryzz5]

But I thought you'd be looking for a job for the last 3 years - how can you have been working with him? None of this rings particularly true so I'll bow out.

I always have a job. I just don't have the full-time I want.

 

[random12345]

I've been working with my friend for many years. He's like my father teaching me lots of things. He knows what I'm doing for him. Also these money is really not a big deal to him.

And my IB FA account can only operation his account for trading, but not be able to take the money out from this account.

You'd have to be worth at least 40-50 million for 150 grand to 'not be a big deal'.

I'm bowing out too - good luck with whatever is actually happening. :-0

 

[terryzz5]

Do I need to be regulated by the FCA if I open a advisor account to trade for some of friends' money? Just 3 of mine friends

Can anyone tell me?

Many Thanks,

You'd have to be worth at least 40-50 million for 150 grand to 'not be a big deal'.

I'm bowing out too - good luck with whatever is actually happening. :-0

Many thanks random12345. I think that I'd better to ask the FCA fist.

 

[Liquid validity]

Is there a list of these banned individuals for the public to monitor ?

And how are members at T2W protected from future grooming on these boards ?

Yes:

FCA:
http://www.fsa.gov.uk/register/proh...MnkrDqRfzqwbMnkrDqRfzqwbynknvrkLOlQzNp65In0__

NFA:
http://www.nfa.futures.org/\/NFA-regulation/regulationNewsRelList.asp?Year=2013

To answer the last question, they aren't, unless they have the sense to realise
no one is going to put untold riches in your pocket for a comparatively small fee.
Otherwise its a case of posters here exposing them.

 

[pboyles]

And how are members at T2W protected from future grooming on these boards ?

They are not. In fact there are quite a few of these grooming exercises occurring here. I was recently banned for exposing one and I've had numerous posts deleted in the past when I've tried to expose them. In fact there is one going on right now, the millionaire that makes 30k a month trading retail forex. In all cases T2W allows them to operate unhindered until such times as it becomes undeniable that they are running a scam, by then of course it too late. Exposing these scams is now considered 'trolling'.

 

[pboyles]

I see Terry has been hitting the delete button this morning. What's wrong, FCA on to you or something?

 

[terryzz5]

I see Terry has been hitting the delete button this morning. What's wrong, FCA on to you or something?

no nothing's wrong. I've never been trading for anyone else before. But actually, I think that I've got enough information I need. Thanks for everyone replying my post. I think that I should delete this topic now.

 

[Purple Brain]

I see Terry has been hitting the delete button this morning. What's wrong, FCA on to you or something?

I don't think terryzz (aka Zheng) is inherently evil or necessarily on a scam. Just a maths type. If his benefactor is also part of the Chinese community then the possibility he sees £150K as no more than a bet would be less surprising and my earlier suspicions possibly less well founded.

Please note that I am not making any value judgements or specifically racial comments - merely expressing the fact that Chinese people tend to bet heavy.

 

[terryzz5]

I don't think terryzz is inherently evil or necessarily on a scam. Just a maths type. If his benefactor is also part of the Chinese community then the possibility he sees £150K as no more than a bet would be less surprising and my earlier suspicions possibly less well founded.

Please note that I am not making any value judgements or specifically racial comments - merely expressing the fact that Chinese people tend to bet heavy.

.... Purple Brain, I'm not trying to waste anyone's money. These money is allocated on several strategies and different markets I developed in these years, not just one. Few capital is not enough to diversify the risks, unless I borrow the money from the brokers to set up a high leverage, and that is even much more risky.

 

[Purple Brain]

.... Purple Brain, I'm not trying to waste anyone's money. These money is allocated on several strategies and different markets I developed in these years, not just one. Few capital is not enough to diversify the risks, unless I borrow the money from the brokers to set up a high leverage, and that is even much more risky.

What are you on about?