Giving Advice

[allenm]

Hi

I have been trading derivatives on the equity markets for twelve months and returning very good profits.
There are a large number of people wanting me to invest on there behalf. I intend to setup a company to allow me to do this without being FSA regulated. I am not soliciting for investors but my question is this..

Is it possible to put advice on my webite without being FSA regulated, would the site have to be hosted abroad or members only etc..

Thanks for your help

 

[Trader333]

You cannot invest other people's money without being FSA regulated let alone put advice on a website. You are leaving yourself wide open to all sorts of legislative tangles. What if you lose all of their money and they suddenly decide to sue you for not being FSA regulated etc ?

I would suggest quite simply dont even consider doing this as it is you who will get the brunt of the law when, as is inevitable in my view, it comes back to haunt you.


Paul

 

[dc2000]

If you trade on behalf of people you will need FSA approval unless the fund is based offshore but that opens a whole new can of worms as for a website you are allowed to show data and graphs and let the user deceide for themselves but as soon as you say I would be a buyer at x level or seller at y level then it is deemed a recomendation and you need to register.

 

[allenm]

Thanks for your response so far guys..

with the point about investing other people money that is not technically what I intend to do. The company will invest and there will be a number of shareholders who own the company negating the need to FSA regulated

 

[dc2000]

Hi Allenm I did similar with rental property, make sure you are aware of the requirements of the money laundering laws

 

[BBB]

What if you get your customers to sign a declaration that there can be no comeback if the money is lost?

Whats the problem with FSA regulation? Does it cost an arm and a leg?

 

[neil]

Your money in unregulated hands?

What if you get your customers to sign a declaration that there can be no comeback if the money is lost?

Whats the problem with FSA regulation? Does it cost an arm and a leg?

Why fear regulation. If you were an investor you would prefer the people handling your money to be regulated/qualified?

 

[BBB]

Thats a valid point Neil. However, due to the increasing amounts of regulation, those paper shufflers down at the FSA impose on managed money, it is becoming harder for them to make attractive returns in relation to what an unregulated money manager can achieve. This is mostly because they are forced to hedge and diversify a lot more than you or I would.

Also, do qualifications make one a better speculator? Not IMO! It just means you have a bunch of academics sitting round discussing 'theory'.

I dont mean to over labour my point here, but the average regulated manager will return around 30% pa. A good trader should be able to do that in a month.

 

[theknifemac]

I think the point with FSA regulation is that it is costly and takes a number of months. I believe you need to have a separate compliance officer to look at compliance issues. Not sure if you can form a limited company, have people buy shares / invest in the company and then have the company trade.....it's an interesting idea but I guess its not that different from the funds offered by the big boys and they are regulated.

Let us know if you find out more.

Stew

 

[Trader333]

Posted by BBB ......It just means you have a bunch of academics sitting round discussing 'theory'.
.....

Now where have I heard that before ?

Ah yes it was in Eurozone and more specifically "Brussels" wasnt it


Paul

 

[rodben]

I have joined to-day my name is rod. which software package do you recommend. Can I make money? and do you recommend that I do lots of chatting and studying first. I just need some basic guide lines to get me started. I can afford to wait and I would rather learn to walk before I try to run. Thank you.

 

[chump]

Rod,
Welcome, go to first steps thread and view the first post theirin to get your preliminary questions answered and many others.

Cheers

 

[rodben]

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I have joined to-day my name is rod. which software package do you recommend. Can I make money? and do you recommend that I do lots of chatting and studying first. I just need some basic guide lines to get me started. I can afford to wait and I would rather learn to walk before I try to run. Thank you.

 

[chump]

http://www.trade2win.co.uk/boards/showthread.php?t=8332

 

[growltiger]

FSA also = Financial Services (and Markets) Act

Thanks for your response so far guys..

with the point about investing other people money that is not technically what I intend to do. The company will invest and there will be a number of shareholders who own the company negating the need to FSA regulated

The Financial Services Act also regulates the process of raising money from investors into a company. If you solicit investment, there are plenty of regulations which apply to your activities. Take legal advice before you get into a position where you fall foul of the law.