Technical Analysis and FSA?

[tcoombs88]

Hi there,

I have been trading for many years. First started out on the floor at liffe before finally, against my will, migrated to electronic trading.

This is just a basic question as the plans are in the first steps, Infact only discussed down the pub. Me and one of my colleagues are thinking about starting our own company that supplies technical analysis of futures and morning/lunch/close news reports to traders.

Does anyone know if you need to be FSA regulated to provide technical analysis of futures? We have conflicting information as we know some prop firms are not FSA regulated but provide their own TA to traders. On the other hand, although you are only providing S/R levels as guidance, it surely should be deemed as providing financial advice? I am aware you don't need to be for the news side of things.

We have checked out FSA's website but it is simply sh*t. If anyone know's anything at all about this subject your help would be mostly appreciated.

As I said, the plans are in very early stages and if they get taken further, we will obviously seek professional advice.

Cheers,
Tom

 

[maiden22]

To be honest I would just check directly with them - I would be surprised if you get useful information from anyone here, even for the early stages of your idea.

Whatever the case, make sure you absolutely certain before you do anything. You seriously do not want to be in the wrong if you are out in the open (if you were running a bolier room scam you'd be fine, they're far too much trouble to go after).

The FSA is in serious crack down mode and is handing out fines all over the place, partly to make up for their own abysmal failings and partly because they need the money (a "chief executive" at £650K a year has got to be paid for somehow).

Being regulated is not cheap and is a great deal of bother, but if you need it you need it.