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No one requires a signature on a conversation you had. Dont sign anything. Sounds well dodgy. Stay clear.
Quoted from original post : "I've not instructed them to invest for me, but have shown interest in future recommendations they might have." That is why they need to ask the questions.
The conversation would probably have been recorded in any case so no need for signature as you say.FREEDOM IS NOT FREE0 -
It sounds a little odd to me.
If they're an execution-only broker which is how you have used them in the past then they wouldn't need to ask such questions since they don't give advice.
If they are an advisory firm and they have given you advice in the past on investments, it is likely they should already have conducted something like this. There are two forms of advisory relationships: advisory managed and advisory non-managed.
Advisory managed takes into account your wider circumstances and risk profile and recommends investments based on your wider portfolio.
Advisory non-managed gives advice on specific investments without doing this. For example, you ring up and say, "What do you think of HSBC shares?" and they say, "We think they're good/bad and recommend a buy/sell." They don't say something like, "We don't think they're right for you as, looking at your portfolio, you are currently overexposed to financials."
Maybe you have had advisory non-managed relationship in the past and they are now switching to advisory managed? I thought it might have been a market research call but not if they've asked you to sign it.
Same answer as above.
Quoted from original post : "I've not instructed them to invest for me, but have shown interest in future recommendations they might have." That is why they need to ask the questions. BTW It is now advisory dealing rather than advisory non-managed. Even under execution only, a broker has to be careful that the stock is suitable. If you let an elderly widow buy a highly speculative hedge fund, even if unsolicited - you can be sued for failure to refuse the order. There is a strong chance that the judge will side with the widow.FREEDOM IS NOT FREE0 -
Not in my experience. Every execution-only broker I know of has a Terms of Business and Risk Warning which clients have to sign to open an account. These say something to the effect of:Even under execution only, a broker has to be careful that the stock is suitable. If you let an elderly widow buy a highly speculative hedge fund, even if unsolicited - you can be sued for failure to refuse the order. There is a strong chance that the judge will side with the widow.
"We are an execution-only broker. We will not offer you investment advice or discuss the merits of any particular investment. The responsibility of each investment decision will be the client's and if there is any doubt to the suitability of any investment, the client should seek advice from a regulated person."
"By signing this, you agree that you have read and understood the risk warning pertaining to stocks and shares/hedge funds/CFDs etc."
If they have signed that they have read and understood such warnings, I would imagine it unlikely that such a complaint would be upheld by the company, court or Financial Ombudsman Service.0 -
I have several execution only accounts. The only ones where suitability questions were asked was in relation to accounts where you deal in derivatives - CFD's, spreadbets, covered warrants etc. Just questions regarding investment experience and essentially whether you have the financial capability to bear any losses. Think its to do with MIFID regulations.0
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Not in my experience. Every execution-only broker I know of has a Terms of Business and Risk Warning which clients have to sign to open an account. These say something to the effect of:
"We are an execution-only broker. We will not offer you investment advice or discuss the merits of any particular investment. The responsibility of each investment decision will be the client's and if there is any doubt to the suitability of any investment, the client should seek advice from a regulated person."
"By signing this, you agree that you have read and understood the risk warning pertaining to stocks and shares/hedge funds/CFDs etc."
If they have signed that they have read and understood such warnings, I would imagine it unlikely that such a complaint would be upheld by the company, court or Financial Ombudsman Service.
I think you would find that the T&C's mean nothing if you deal for someone who is senile and you haven't done your due diligence. However, I agree that under normal conditions suitability is not an issue. But in answering the original poster, he specifically stated that he had shown interest in recommendations. Thus, my statement about the need for suitability questions is a valid one.FREEDOM IS NOT FREE0 -
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Can people give me their views on this :- I sell shares in xy and slip into Capital gains (nice one) If I bought the same shares and amount back within 30 days it counteracts the capital gain back below £10100 for 09/10, can I then sell them again within 30 days say April 20th 2010, will this move the gain to 10/11 :think: Also can I keep buying and selling every say 25 days :question: your views appreciated. I know there are dealing costs involved or can you only get away with this once ?0
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Just_landed wrote: »Can people give me their views on this :- I sell shares in xy and slip into Capital gains (nice one) If I bought the same shares and amount back within 30 days it counteracts the capital gain back below £10100 for 09/10, can I then sell them again within 30 days say April 20th 2010, will this move the gain to 10/11 :think: Also can I keep buying and selling every say 25 days :question: your views appreciated. I know there are dealing costs involved or can you only get away with this once ?
What is your aim of doing this? I don't really follow how this would benefit you. My understanding is that the 30 day rule means that when you eventually dispose of the shares the gain will be calculated on when you originally bought them, not the last time you sold and re-bought them. If you don't want to realise a gain in the current tax year then simply not selling would achieve this.0 -
1st question I would ask is: Do you want to sell them or hang on to them. Look in to the entrepreneur allowance. It means you can use the money to buy more shares without getting taxed. I've done it and had it checked out by a Financial Advisior and its ok to do.
So you can hold on to them or buy more. Never heard about the 30 day limit.
Hope that helps.Just_landed wrote: »Can people give me their views on this :- I sell shares in xy and slip into Capital gains (nice one) If I bought the same shares and amount back within 30 days it counteracts the capital gain back below £10100 for 09/10, can I then sell them again within 30 days say April 20th 2010, will this move the gain to 10/11 :think: Also can I keep buying and selling every say 25 days :question: your views appreciated. I know there are dealing costs involved or can you only get away with this once ?0 -
Thank you for your thoughts I will tell a bit more, I sold some shares hoping to buy back in cheaper but true to form they just keep going up. I have ended up with more than £10100 CG so I was hoping to drag that part of the profit into 2010/2011 tax year. so by reducing CG back below £10100.
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