L
Liquid validity
??? The investopedia banner ads you mean?
Same as the banner ads here.
If you are implying I'm an affiliate of something it would be pretty hard to put
an affiliate link on another site unless I hacked it...
Its just banner ads of an external site, crap but nothing to do with me.
L
Liquid validity
BTW, no worries on raising concerns over that link, its better to say something than not
random12345
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I think people believe they can avoid the FCA issues by way of not being a 'firm' and/or a business except they are considered a business under law in many circumstances as a person. The FCA attempt to define it in their handbook:
http://fshandbook.info/FS/html/handbook/PERG/2/3
Though the final say is through the act and the RAO.
You are likely to find some judicial sympathy if you fall foul of this stuff while trading small accounts however - as we mentioned before getting into the millions territory as Alex Hope did is when you really need to worry.
http://fshandbook.info/FS/html/handbook/PERG/2/3
Though the final say is through the act and the RAO.
You are likely to find some judicial sympathy if you fall foul of this stuff while trading small accounts however - as we mentioned before getting into the millions territory as Alex Hope did is when you really need to worry.
Black Jack
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Well, we shall have to agree to disagree. If you think that you are acting as a business then you will have to set up a business and register it accordingly, you will also have to register yourself with the FCA as a business as well as an individual. You will have to appoint certain individuals to cover the Controlled Function roles of your business, i.e. Director, Compliance Oversight, Money Laundering Reporting Officer, Trader etc. all of whom have to be approved by the FCA. These individuals will need to prove they are competent and suitable for the role in question and will have to provide details for at least the last 5 years of their employment. You will need to have sufficient capital backing and submit reports to the FCA twice yearly. If you are holding “Client Money” then you will also have to abide by the FCA CASS regs.
I think you have misinterpreted the FCA regulations as I am sure the FCA would not require all of the above for you to trade on you and three of your friends behalf. From the way you described your situation you are effectively running an investment club for which you do not have to be regulated. It’s the broker that is providing an OTC product and service and it is they that need to be regulated. There are a number of organisations that provide assistance with setting up investment clubs and I would suggest that you search online for information regarding this.
Interesting discussion, I've just contacted alpari uk with same question this is the reply :
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thanks for contacting us. As discussed before, making investments decisions in qualifying financial instruments, on behalf of a client, is a regulated activity throughout the EU and, generally, in most countries around the world.
Rolling spot FX, CFD s and spread bets are all qualifying financial instruments . In order to make such an investment decisions, or otherwise control the account of a client, the money Manager must have a regulatory authorization.
As an FCA regulated broker Alpari (UK) we ask you to be authorized. You could be excluded from this requirement, for example, if you actually don’t’ provide any discretionary management service, or if you don’t’ get paid for that and so on. There are several criteria to take into account.
So we need to fully understand your idea of managing investments via limited Power of Attorney and you need to highlight your way of business and understand the reason behind that.
If you can provide more information about that I will get back to you with a final and complete response.
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Anyone an idea what i should reply ? Ask my clients to make a donation every month ?
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thanks for contacting us. As discussed before, making investments decisions in qualifying financial instruments, on behalf of a client, is a regulated activity throughout the EU and, generally, in most countries around the world.
Rolling spot FX, CFD s and spread bets are all qualifying financial instruments . In order to make such an investment decisions, or otherwise control the account of a client, the money Manager must have a regulatory authorization.
As an FCA regulated broker Alpari (UK) we ask you to be authorized. You could be excluded from this requirement, for example, if you actually don’t’ provide any discretionary management service, or if you don’t’ get paid for that and so on. There are several criteria to take into account.
So we need to fully understand your idea of managing investments via limited Power of Attorney and you need to highlight your way of business and understand the reason behind that.
If you can provide more information about that I will get back to you with a final and complete response.
-----------------
Anyone an idea what i should reply ? Ask my clients to make a donation every month ?
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random12345
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I don't personally agree with this, for me the FCA/act is clear:
"Any person wishing to carry on one or more regulated activities, by way of business, must apply to us for authorisation (unless they can abide by the terms of exclusion or are exempt)."
Business is defined in the act and handbook, exemptions defined in the act and RAO. You can be an individual trading mate's money and fall foul of both - there is no exemption stated in the handbook or legislation for someone taking money from friends to trade that I have ever read so long as the business element test is left relatively vague - if you know of applicable sections/articles to the contrary then I would be happy to see them.
There are exemptions for 'small firms' from requiring capital adequacy checks (or their ICG will be very low) and all of the other functions you mention by way of permission profiling, an individual can arrange to do all of these via the application pack. I don't know what you mean as register as a business outside of the FCA business registration, which you mention separately. Businesses are not registered except by UTR if they are not a company?
In my opinion, anyone considering trading OPM should get an exemption letter from the FCA in writing if such an exemption exists.
L
Liquid validity
The reason I haven't misinterpreted the rules is simple.
Who in their right mind is going to take on the pressure and responsibility
of OPM for free.
So if you charge anything - its a business and the rules apply.
Even then, you can still have a not for profit business.
If any charges are made to cover expenses or anything else, its still a business.
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People must have been successful to get this exemption somehow ?
Just wondering what Alpari want me to state to be able to open an PAMM account with them.
I fully understand that we need to abide by the rules and regulations but somehow there are ways this can be done to prevent a very costly process of applying for licence for at least 1,5k
Just wondering what Alpari want me to state to be able to open an PAMM account with them.
I fully understand that we need to abide by the rules and regulations but somehow there are ways this can be done to prevent a very costly process of applying for licence for at least 1,5k
L
Liquid validity
Probably the easiest and simplest way is to use a trade ghosting site that supports
decent brokers like IB etc.
No problem with FCA regulation then.
Purple Brain
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About sums it up for me.
Purple Brain
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On a serious note, for those whose trading skills have attracted attention of friends and family - why not just get them to give you he money, stick it in your account and trade it? Give them profits on an agreed or ad hoc basis - whatever you all decide - just don't document anything. Surely that keeps within both the spirit and the letter of the law?
The regulatory framework and rules were presumably formulated for professional concerns where large amounts are sought or actively canvassed for and where fees and profit allocations are conducted as a business rather than as a consortium, syndicate or pool.
The regulatory framework and rules were presumably formulated for professional concerns where large amounts are sought or actively canvassed for and where fees and profit allocations are conducted as a business rather than as a consortium, syndicate or pool.
random12345
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Agree, best way is always as a personal loan.
random12345
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If you're looking for funding then your best bet is to put together an 18 month to two year trading record and then lobby fund of funds by letter, e-mail, phone call, turn up at reception in your cheapest Burton suit - a lot of them have so much toxic sh!te still on their books and small primaries have received attention lately - I have seen this done. There are also a few forums out there for finding HNW individuals, but they might not understand the issues involved.
There are a few first loss funders out there... like Topwater... but I'd stay away from them, you can't gate their funds, which is a terrible situation to be in on a first loss basis.
random12345
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random12345
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Mightypen is the type of madman that always brightens my day. I honestly hope he is never banned.
