Investment Club bank account

Hi. If I were to arrange for the investment club subs to be paid into my Lloyds Bank personal account, would the bank now consider the account to be a business account? The subs are six payments totalling £250 per month and that sum would immediately be transferred to the investment platform. Thanks

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  • MarchitielloMarchitiello Forumite
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    “Most investment clubs buy the Proshare Manual, which currently costs £25 plus postage, as this sets out most of what you need to know to set up and run an investment club.

    You’ll need a basic legal agreement that covers how the club is run. You’ll also need to set up a bank account to collect regular contributions and a share dealing account to buy and sell your investments.”

    source: https://www.fool.co.uk/investing-basics/investment-clubs/investment-clubs-part-2/


  • eviloevilo Forumite
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    Thank you for not answering the question. It is an existing investment club with a bank account that is not convenient. I am trying to decide what to do if the bank decides to close the account
  • lr1277lr1277 Forumite
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    Your fellow club members must hold you in high regard. If you were to die with the money in the account, the money would be considered as part of your estate and distributed accoringly. That cuts both ways in either money coming from the members destined for the share platform or money from the share platform destined for the members. The members would have great difficulty in getting their money back if they could at all.

    I think you are on sticky ground using your own personal account to manage the club's finances. Yes the bank might consider it a business account, forcing you to close it and take both your personal business and club business elsewhere. Pure speculation on my part.

    20 years ago, the investment club I was in had a investment club account with Barclays. We had to provide them with the setup paperwork (articles of association, perhaps) before they would open the account. I don't know if they still offer such accounts. I believe Lloyds offers account for clubs and socieities, though I don't if they include investment clubs in their list of allowable clients.
    Be careful with Barclays. I was one of the signatories for the club's account, not having had any other dealings with them. After a few years we closed the account. Then a few years later I wanted to open a personal account with Barclays and they would only let me do that after I had made an appointment in branch. I think it was because I was a signatory on the club's account. So I didn't bother opening the personal account with Barclays.
  • edited 22 November 2022 at 12:21AM
    MarchitielloMarchitiello Forumite
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    edited 22 November 2022 at 12:21AM
    evilo said:
    Thank you for not answering the question. It is an existing investment club with a bank account that is not convenient. I am trying to decide what to do if the bank decides to close the account
    The question was answered reporting some legal information which imply that you could not use your own account to run an investment club, it has nothing to do with the bank considering it a business account, albeit soon or later it could have triggered some sort of investigation 
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