Investment Query

ColdIron

One final observation. Offering financial advice is a regulated activity in the UK requiring him to be registered with the FCA, the fact that he is charging a "fee" puts him well beyond the bloke down the pub category

So to recap, this chap is probably acting outside of the law, with a contract that is probably not worth the paper it is written on containing a meaningless guarantee

It's your money but I'd rather sautee my own pancreas before getting involved in this sort of arrangement

masonic

PPCG wrote: »

It's not physically possible for him to fund my account from anywhere else. Absolutely impossible as it's my trading account.

It was more what would happen if the investments don't make the guaranteed 8%. If the stockmarket collectively takes a nosedive one year, which it does from time to time, from where is your guaranteed return paid?

By comments so far I'd suggest nobody else has had experiences like this?

It sounds like a very unconventional arrangement to say the least. From what you've said so far, you pay this person a fee, deposit money in your trading account and allow them to trade on your behalf. Presumably this trading account is with a well known 3rd party with whom you have a direct relationship?

joe_mcclaine

Although you say it's not a Ponzi, it certainly has all the hallmarks of a fledgling one. An accountant I know has just finished a 5 stretch for something that sounds remarkably similar.

Good luck, and all that.

PPCG

Your_Hero wrote: »

So what happens when he doesn't meet the 8%? Does he rebate you from his own pocket?

Worse still, what happens when he loses all your money? What guarantee is there then?

I would run a mile if I heard this.

To reiterate, MY money is in MY account that can only be deposited back to MY bank account. My original money cannot be withdrawn and stop loss is set at my discretion. I have access to the account and I can see what is going on. The money/trades are also insured so I would suggest that would be more of a guarantee than just the contract.

Don't get me wrong I had all these queries and reservations. To date I have made money and well in excess of anything I can find on the high street or without more of a risk than this (although I appreciate there is risk with this). This is one of the reasons why I posted and it's looking like nothing similar to this exists.

I am absolutely certain my money as safe as it can be in any sort of investment and I trust my guy simply because I have a trading history to to see.

Your_Hero

PPCG wrote: »

To reiterate, MY money is in MY account that can only be deposited back to MY bank account. My original money cannot be withdrawn and stop loss is set at my discretion. I have access to the account and I can see what is going on. The money/trades are also insured so I would suggest that would be more of a guarantee than just the contract.

That doesn't answer my questions at all. The fact that it's in your own account makes no difference if he loses money. I'm talking about investment risk, not him withdrawing your money and doing a runner.

I am absolutely certain my money as safe as it can be in any sort of investment and I trust my guy simply because I have a trading history to to see.

The fact that you use the word "safe" with "investments" would suggest otherwise.

Good luck anyhow.

colsten

PPCG wrote: »

TThe money/trades are also insured so I would suggest that would be more of a guarantee than just the contract.

Insured? How? With whom? I'd love to know where I can insure my investments, tell us more.

masonic

PPCG wrote: »

To reiterate, MY money is in MY account that can only be deposited back to MY bank account. My original money cannot be withdrawn and stop loss is set at my discretion. I have access to the account and I can see what is going on. The money/trades are also insured so I would suggest that would be more of a guarantee than just the contract.

I'd be intrigued to hear more about how the insurance part works, but that aside, the trading account to which you refer - is that an account you opened with a well known broker, or is was it all set up and provided through this investor character? (in other words, are you 100% sure what you are seeing when you log in to your "trading account" is genuine)

masonic

I must admit I'm still none the wiser. It seems like what is going on is one of the following 3 things, but I'm not sure which one:

A) It is a variation of this approach.

There are actually larger numbers of clients than the OP has been led to believe. Different investments are selected for each client and by chance some do well and stay on. Those who don't do so well leave and are quickly replaced, a few may even have to be paid off to prevent them from alerting the authorities, but there is sufficient money from fees to do that. Since everything is done on the quiet through introductions, nobody hears from the dissatisfied customers.

C) The returns are genuine, but the clients are misled about the investment risk. Everything is fine while the strategy is working. One day in the future, however, it will all go wrong and the promised safeguards will be found to be lacking.

Anyone care to put forward an alternative theory?

puk999

Could it be feasible that the OP (who only joined today) might actually be the person seeking investors? Their story might be the bait to catch forum readers who want to get rich quick. Perhaps they hope some PMs will come their way asking for more details?

Archi_Bald

Definitely sounds all very fishy. The guarantee and insurance bits are not credible, for starters. Coldiron's remarks regarding financial advice are very valid, too. More than that, if this was a legitimate operation, we, and many other people such as the Press, would have heard about it before.

It is a scam.