Do I need to be regulated by the FCA?

[Hate2Lose]

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,

No, you don’t need to be regulated by the FCA as you are not acting as a financial organisation.
However, your broker will not give your friends access to the account unless you provide authority for them to have access to it. It may well be that the broker will not do that anyway but you should check that out with them before you open the account.

 

[Liquid validity]

No, you don’t need to be regulated by the FCA as you are not acting as a financial organisation.
However, your broker will not give your friends access to the account unless you provide authority for them to have access to it. It may well be that the broker will not do that anyway but you should check that out with them before you open the account.

Incorrect.
http://wss.fsa.gov.uk/wss/servlet?page=glossary&glossary=A&term=GL1055

Trading OPM (other peoples money) when they have no direct day to day control:

For some business activities you need to apply for authorisation from the FCA. For most smaller firms, this might include:

Selling, advising on, managing or trading in securities or investments, including most pensions. Arranging, advising on or managing any scheme where other people's money or investments are pooled and these people don't share day-to-day control.

If the money is explicitly given to trade with, this applies.

 

[terryzz5]

Incorrect.
http://wss.fsa.gov.uk/wss/servlet?page=glossary&glossary=A&term=GL1055

Trading OPM (other peoples money) when they have no direct day to day control:


If the money is explicitly given to trade with, this applies.

:clap: so if my friends have direct day to day control, then I can trade for them without being regulated?

 

[Liquid validity]

:clap: so if my friends have direct day to day control, then I can trade for them without being regulated?

Theoretically, but that essentially means they all have log in details and
access to your or someone else's bank details.
To have full control, each person should be able to withdraw their funds to their account.

With no account segregation for each person, who is responsible
if one of you walks with the whole lot?
Its not as simple as it looks.

I'd just steer clear if I was you.

 

[random12345]

:clap: so if my friends have direct day to day control, then I can trade for them without being regulated?

I think we established that your stories are so all over the place that you need to call the FCA with the complete facts of your situation and not ask people here who don't know.

Trading OPM is something most of us don't touch and those that do are likely too thick to think about speaking to any sort of regulator.

 

[Purple Brain]

I didn't know she was a trader.

Nice assets and a firm capital base.

 

[Liquid validity]

I didn't know she was a trader.

Nice assets and a firm capital base.

The bloke:
http://www.theguardian.com/business/2013/apr/29/fca-charges-currency-trader-alex-hope-fraud

 

[Purple Brain]

The bloke:
http://www.theguardian.com/business/2013/apr/29/fca-charges-currency-trader-alex-hope-fraud

Yes, I know. Thought I'd try my hand at humour. Obviously a major Fail.


btw - I used to follow Alex Hope in twitter and he didn't have even an ounce of the BS scam about him that some on here do.

Did he actually rip people off with a non-existent or fraudulent system or did he just hit a load of bad trades and lose their money? Did he actually lose any money at all or was it just a contravention (total lack of) FSA - as it was then - compliance?

 

[random12345]

Yes, I know. Thought I'd try my hand at humour. Obviously a major Fail.


btw - I used to follow Alex Hope in twitter and he didn't have even an ounce of the BS scam about him that some on here do.

Did he actually rip people off with a non-existent or fraudulent system or did he just hit a load of bad trades and lose their money? Did he actually lose any money at all or was it just a contravention (total lack of) FSA - as it was then - compliance?

The shortened version is that he was trading substitutional amounts of OPM (5 million) in an unauthorised investment scheme.

Clearly he lost some and was ratted out. I understand he was young at the time, but nobody doesn't (that double negative...) think "well maybe this is dodgy" for 5 minutes when they start getting 7 figures deposited by third parties.

 

[Liquid validity]

Yes, I know. Thought I'd try my hand at humour. Obviously a major Fail.


btw - I used to follow Alex Hope in twitter and he didn't have even an ounce of the BS scam about him that some on here do.

Did he actually rip people off with a non-existent or fraudulent system or did he just hit a load of bad trades and lose their money? Did he actually lose any money at all or was it just a contravention (total lack of) FSA - as it was then - compliance?

I know, I was only pulling your leg

 

[Purple Brain]

I know, I was only pulling your leg

Ah that's it then - go and make me feel stupid why don't you.

It's an area in which I really don't need a lot of help.




Anybody else getting anal about pelling & grammar since the xzero tolerance edit was introuced?

 

[Liquid validity]

Ah that's it then - go and make me feel stupid why don't you.

It's an area in which I really don't need a lot of help.




Anybody else getting anal about pelling & grammar since the xzero tolerance edit was introuced?

I didn't recognise him either, just her.
Googled the image url = Alex Hope, knew the name not the face.

FWIW you come across as a long long way away from stupid I can assure you.
Just me having a joke thats all, obviously went a bit wrong my end, my mistake

 

[Purple Brain]

I didn't recognise him either, just her.
Googled the image url = Alex Hope, knew the name not the face.

FWIW you come across as a long long way away from stupid I can assure you.
Just me having a joke thats all, obviously went a bit wrong my end, my mistake

Too late. I shot myself in the head. Guilt. Enjoy.

 

[Purple Brain]

I didn't recognise him either, just her.
Googled the image url = Alex Hope, knew the name not the face.

FWIW you come across as a long long way away from stupid I can assure you.
Just me having a joke thats all, obviously went a bit wrong my end, my mistake

Seriously though, at his height he was in all the major night spots (Liverpool was the last public venue) and there were twitter images of the receipt for the champagne - something ridiculous. Hundred plus grand for a night out?

Even forexmoresiminian doesn't pull that sort of weight. Yet.

 

[Liquid validity]

Seriously though, at his height he was in all the major night spots (Liverpool was the last public venue) and there were twitter images of the receipt for the champagne - something ridiculous. Hundred plus grand for a night out?

Even forexmoresiminian doesn't pull that sort of weight. Yet.

That explains it, I don't use tw@tter or FB, not big on papers either.

Too late. I shot myself in the head. Guilt. Enjoy.

Cool, can I have your money then?

 

[pboyles]

Here you go,

http://www.dailymail.co.uk/news/art...d-running-unauthorised-investment-scheme.html

 

[bustech]

Check out this ladies husband.

http://www.smh.com.au/sport/horsera...ns-the-2013-melbourne-cup-20131105-2wyv8.html

 

[Black Jack]

Incorrect.
http://wss.fsa.gov.uk/wss/servlet?page=glossary&glossary=A&term=GL1055

Hi L_V
I’m sorry but that is not the case. You are opening an account with a broker to trade on behalf of a group of friends. The broker is selling you his services and is therefore required to be regulated. However, you are the Client of the broker, you hold the account with the broker and you are not selling a service to your friends merely acting on their behalf. The section of the Glossary you refer to is directed at businesses providing a financial service and not clients.

Please correct me if I'm wrong.

 

[pboyles]

The thing is that you are pretty much guaranteed to lose some or all of the money. This is when people start getting nasty and start looking for revenge, some members here took a guy to bankruptcy in similar circumstances even though it ultimately did them no good. You can be sure this terry guy is not doing this for free, he will be taking money from them and making promises about how much they will make. When they realise the truth they'll turn him in.

 

[Liquid validity]

Hi L_V
I’m sorry but that is not the case. You are opening an account with a broker to trade on behalf of a group of friends. The broker is selling you his services and is therefore required to be regulated. However, you are the Client of the broker, you hold the account with the broker and you are not selling a service to your friends merely acting on their behalf. The section of the Glossary you refer to is directed at businesses providing a financial service and not clients.

Please correct me if I'm wrong.

I'm sorry but it is the case.
The broker has nothing to do with it.

Any or all of the following mean you are considered to be a financial business:
If you control someone elses money, accept money from someone else,
trade on their behalf, run a collective investment scheme and so on.

To be classed as business activity, it must be carried on 'by way of business'.
That means if you accept a cut or charge for your time, or even just
server costs, it is a business, like it or not, no ifs, buts or maybes.

http://www.fca.org.uk/firms/about-authorisation/do-i-need-to-be-authorised
http://www.investopedia.com/articles/younginvestors/06/investingforfriends.asp