anyone knows whether a proprietary trading firm needs FCA regulation in the UK or not?
- Thread starter kx001
- Start date
Set up an IB friends and family account. You can have 15 sub accounts without registering with anybody.
https://www.interactivebrokers.com/en/index.php?f=friendsFamilyAccounts&p=more
https://www.interactivebrokers.com/en/index.php?f=friendsFamilyAccounts&p=more
in US, yes. But in UK, it doesn't work.
I phoned FCA. They said that I need to be a IFA first otherwise it is illegal.
I am not a Lawyer (though in my pre self employed days I was FCA registered myself). But if you read the FCA website you need to be registered if you are carrying on a regulated activity (which this obviously is) and by way of a business. The obvious interpretation is that if you are charging for your work through a performance or management fees then its a business and you need to register. If it's just friends and family, and you receive no feeds, then it isn't a business and no registration is required.
Note I believe that this doesn't preclude me employing my mate John to manage my money and paying him a salary, or even a percentage of the profits (which is why prop firms aren't registered). But it would mean that John couldn't set up a limited company and then charge me a fee to trade my capital.
Note I believe that this doesn't preclude me employing my mate John to manage my money and paying him a salary, or even a percentage of the profits (which is why prop firms aren't registered). But it would mean that John couldn't set up a limited company and then charge me a fee to trade my capital.
out of all the places in the world you can setup, why would you want to setup in the UK? Just curious..........