Legality of A's cash in B's high interest acc?

agsnu

IANAL, but that might mean that John was taking deposits from his friends. As deposit taking is a regulated activity, he might very well be in breach of the Financial Services and Markets Act 2000... There has been a prosecution under this before (see http://www.fsa.gov.uk/pages/Library/Communication/PR/2005/070.shtml) but that was related to a ponzi-style scheme.

LittleVoice

tonygee wrote: »

ensure that John leaves 'appropriate' amount in his will to friend

That involves trusting John not to change his will and that he actually has assets which would allow that to be paid out from his estate.

A simple loan agreement for the capital seems a simpler answer.