Investment Vehicle to hold funds of people saving to buy shares in a Ltd Company.
Tolkny
Posts: 72 Forumite
The actual company is irrelevant.
The situation is that fans of a football team are fed up with the owners not giving sufficient attention to the concerns of those fans.
As a group they hold a few shares as do some in the group hold shares individually, but not currently enough to have any significant influence on the company directors.
At some point the current company shareholders will sell shares and when that happens the group of fans want to be immediately ready to purchase as many as they can afford, having saved up by making monthly deposits.
The fans are in an association with a formal constitution but are not wanting to set up to hold the funds themselves as they have enough else to do, they do not want to themselves want to satisfy the UK Financial Regulators.
What sort of organisation would be competent and willing to hold funds for such a purpose in accounts of the individual investors, who themselves may need to withdraw all or some of the funds as their personal circumstances change?
The situation is that fans of a football team are fed up with the owners not giving sufficient attention to the concerns of those fans.
As a group they hold a few shares as do some in the group hold shares individually, but not currently enough to have any significant influence on the company directors.
At some point the current company shareholders will sell shares and when that happens the group of fans want to be immediately ready to purchase as many as they can afford, having saved up by making monthly deposits.
The fans are in an association with a formal constitution but are not wanting to set up to hold the funds themselves as they have enough else to do, they do not want to themselves want to satisfy the UK Financial Regulators.
What sort of organisation would be competent and willing to hold funds for such a purpose in accounts of the individual investors, who themselves may need to withdraw all or some of the funds as their personal circumstances change?
Andrew S Hatton
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Comments
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It may well be that similar issues have been considered before in the MSE Forums, I welcome signposting to such considerations.Andrew S Hatton0
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BUMP - I hope I get a response or two - please?Andrew S Hatton0
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Since you say "in accounts of the individual investors" sounds like something any bank, building society or credit union could do.
Each member opens an easy access savings account.Eco Miser
Saving money for well over half a century0 -
Thank you both very much for that idea.
However, I want the funds to be under the control of the overall fans organisation - if at all possible - so that without reference to the investors as individuals a quick decision can be made if necessary to buy shares on behalf of all those who gave advance permission - subject to a right to a refund given a specific period of notice.Andrew S Hatton0 -
Maybe set up an "Investment Club".
https://www.sharesmagazine.co.uk/article/join-the-club
You could all add money to the pot and decide what you want done with it while waiting for the opportunity to come up.0 -
Thanks - in haste & without looking that up right now a query comes to mind - can it be done free of the Financial Regulation authority, please?Andrew S Hatton0
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The actual company is irrelevant.
The situation is that fans of a football team are fed up with the owners not giving sufficient attention to the concerns of those fans.
As a group they hold a few shares as do some in the group hold shares individually, but not currently enough to have any significant influence on the company directors.
You're going to be waiting a long time to get enough Arsenal shares to make a change
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Ho, ho, ho AnotherJoe - hence I said the Company is irrelevant - it is how it can easily be done in principle that is relevant - so that the available funds can be used by the "Fans' Group" Treasurer when s/he thinks the time is right - having been trusted by the Investors.Andrew S Hatton0
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You would be using an investment platform provided by a 3rd party. For example The Share Centre:Thanks - in haste & without looking that up right now a query comes to mind - can it be done free of the Financial Regulation authority, please?
https://www.share.com/accounts/dealing-accounts/investment-club/account-overview/
Normally Share Clubs are used for regular groups investing but I see no reason why it could not be used for what you propose.
You would need to agree a constitution, appoint people to run it etc so there would be some paperwork to do. But that's essential to make sure everybody understands the rules about what will happen to the money while you wait (risk investing it elsewhere or sit there earning nothing?), who decides when to invest, under what circumstances can people get their money back etc.
My understanding is if you are not giving investment advice, the person(s) managing it are unpaid, and you are using an execution only broker then the regulators do not have to get involved. As long as you are a cooperative you should be OK, if run as a business then you would not.
However I am no expert on the subject. If you are talking large sums of money then paying for professional legal and/or financial advice on the subject may be a good idea.0
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