Legal Question

trendsignal UK

Member
53 1
I don't know if anyone here is a lawyer, but I wondered if anyone has a view on the following question.

I want to run a live futures trading room. I want to use this to coach people that have bought our product and my not be getting the best from it. In short I want to call out live trades with levels, stop losses etc.

Is this legal? The FSA were pretty non-committal (which is a bit of a pain really).

My assumption is that the front running rules prevent us from doing this in the UK? In the US we can do it simply by having people sign a disclaimer that they are in the room for training and not trading advice.

Anyone know the answer for the UK please?
 

BF1

Member
97 0
I don`t know the answer to your question, but its encouraging to see the after thought given to those that have purchased your product.

As the FSA have been non-committal, why don`t you do what the US can do and if you`re ever challenged you can at least say that the appropriate body didn`t stipulate that you couldn`t do it.
 

trendsignal UK

Member
53 1
BF1 said:
Iwhy don`t you do what the US can do and if you`re ever challenged you can at least say that the appropriate body didn`t stipulate that you couldn`t do it.

Yes. I'd like to but the FSA say that ignorance is no excuse. Given the penalty appears to be jail, it seems a pretty risky thing to do. I'll be fine when I go back to Oz later this year - I am a regulated Futures Advisor in Oz so I can call trades from Perth no worries.

Thanks for yoour aftercare comments, as a matter of record, if ANYONE is struggling with TrendSignal then they should alsways ask us for advice. Aftercare is important.
 

trendsignal UK

Member
53 1
oatman said:
Did you ask whether your Oz registration is recognised in the UK?

I have an FSA registration as well - but that is only valid if people become clients of our futures brokerage (i.e. open accounts). What I mean here is that you cannot give advice unless you have done your KYC (Know Your Customer etc.).

Although we offer competative futures rates (just over the IB rates, and using their platform) I don't want to be accused of forcing people to open accounts.

Personally I think it is much easier to make money with futures (biased) and I don't see the tax as an issue (profit is more important, and a good accountant cures tax issues).

The major problem is the FSA won't make a clear statement. I notice there seem to be a lot of people doing "live" training without FSA registration? Maybe I have just rung the wrong part of the FSA? All help gratefully received.
 

BBB

Experienced member
1,071 3
I had to deal with the FSA when I was in the IT industry. I had a few questions on how they would view a piece of software that we planned to market to the insurance sector. They are about as much use as a chocolate teapot. A total waste of space imo. They just couldn't be bothered to help.

From a common sense stand point, I see no reason why there should be any comeback if people have signed some form stating they will not hold you responsible as stated above. Of course, common sense is in short supply when it comes to bureaucracy in this country - esp the FSA
 

trendsignal UK

Member
53 1
FSA - what is the point?

Thanks for all your help.

Indeed the FSA seem odd. If you want to carry out a multi-million pound scam they come down on you like a ton of bricks (but only after you have fled the country and stashed the dosh somewhere where they cannot find it). Try and provide better service for clients and they tell you "we cannot answer specific questions in this area" (my last email response from them. I mean what is the point if you cannot be specific? Funny people.

Ho hum. Seems that I'll go the "only for clients" route. That way I know I'm legal. Given our futures platform is IB's and we are only 50p per side more expensive (and with better service) I hope this won't hack too many people off.
 

JJL3142

Active member
174 0
I deal with the FSA on a regular basis (for my work as risk manager)..

The FSA are becoming more risk focused rather than on a prescritive basis - however this does not mean they wont come down on you like a ton of bricks !!

If you get a non-committal answer from them (as is the usual case) you need to get documentation from them and follow it up with the FSA supervisor ..


Pervaz
 

donaldduke

Experienced member
1,665 257
You should set up real accounts for the students that they can trade (enough for 1 minicontract
perhaps) using your own money.

If your system is so good then you will profit from doing this.

As its your money i dont see why the FSA should be interested.

If you are too scared to do this then your program is probably garbage.
 

LevII

Established member
579 16
Donald Duck

What a very unpleasant and uninformed response. What on earth do you hope to achieve?
 
 
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