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Stockbrokers for Investment Clubs Sep’25

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  • wmb194
    wmb194 Posts: 5,215 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 27 September at 12:23PM
    Dorcots said:
    ...I've had to provide a list of all members, their names, holdings and percentage ownership of the club....  
    Talking to HMRC two weeks ago, I was lead to believe that, since 2013 and unless they specifically ask, HMRC do not require any information from investment clubs. See also their Internal Manual page CG20600. Also see CG40650.
    So why do IBKR need to ask for LEIs, UTRs and membership data? This seems to be a hangover from the pre-2013 era. Can IBKR be persuaded to change their form to not request this information for a UK investment club?
    It'll be to do with the relatively recent anti-insider dealing and stock market manipulation e.g., painting the tape regulations. Every trade now needs to have a unique identifier that ties it back to a particular individual or entity that the stock exchanges and regulators have sight of. I'm guessing the problem with investment clubs is that insiders can potentially hide themselves behind someone else's identity.
  • poseidon1
    poseidon1 Posts: 1,768 Forumite
    1,000 Posts Second Anniversary Name Dropper
    wmb194 said:
    Dorcots said:
    ...I've had to provide a list of all members, their names, holdings and percentage ownership of the club....  
    Talking to HMRC two weeks ago, I was lead to believe that, since 2013 and unless they specifically ask, HMRC do not require any information from investment clubs. See also their Internal Manual page CG20600. Also see CG40650.
    So why do IBKR need to ask for LEIs, UTRs and membership data? This seems to be a hangover from the pre-2013 era. Can IBKR be persuaded to change their form to not request this information for a UK investment club?
    It'll be to do with the relatively recent anti-insider dealing and stock market manipulation e.g., painting the tape regulations. Every trade now needs to have a unique identifier that ties it back to a particular individual or entity that the stock exchanges and regulators have sight of. I'm guessing the problem with investment clubs is that insiders can potentially hide themselves behind someone else's identity.
    American brokers operating outside of the USA also have to contend with FATCA and comply with   IRS world policing to identify non compliant expat Americans. Although unlikely to be any American nationals hiding within UK investment clubs  IRS don't see it that way.

    There is a reason why  many UK banks and financial institutions dropped Americans as customers when FATCA was introduced.
  • Hi all - I am new to the Forum - I amTreasurer of an Investment Club with 10 members.  We started in 2007.  Doing ok - now in the same boat as you all.  I have done loads of research - came up with a few names but eventually plumped for CFM - who already have an Investment Club client list (I don't know who or how many).  We started the application process after a few voice/email converstions with their support staff there - who were extremely helpful.  All really good so far.
    We are currently going through the T's and C's of the Agreement document - and find an extremely heavy reliance on a 3rd party nominee/custodian company which is extremely surprising. We expected there would be a nominee company - but it seems the nominee actually runs the show and has more power than CFM.  Such a shame.  However we are still ploughing through the paperwork to see if we can accept the T's and C's.  Does anybody else have any experience with CFM?
  • phlebas192
    phlebas192 Posts: 93 Forumite
    Second Anniversary 10 Posts Name Dropper
    Floxylady said:
    Hi all - I am new to the Forum - I amTreasurer of an Investment Club with 10 members.  We started in 2007.  Doing ok - now in the same boat as you all.  I have done loads of research - came up with a few names but eventually plumped for CFM - who already have an Investment Club client list (I don't know who or how many).  We started the application process after a few voice/email converstions with their support staff there - who were extremely helpful.  All really good so far.
    We are currently going through the T's and C's of the Agreement document - and find an extremely heavy reliance on a 3rd party nominee/custodian company which is extremely surprising. We expected there would be a nominee company - but it seems the nominee actually runs the show and has more power than CFM.  Such a shame.  However we are still ploughing through the paperwork to see if we can accept the T's and C's.  Does anybody else have any experience with CFM?
    CFM is a very small outfit with just 4 employees according to their latest accounts so it's not surprising that they rely on 3rd parties. 

  • Thanks phlebas192.  Y
    Yes we knew they were small didn't realie it was only 4 employees =- although I have spoken to a few more than that.  Mind you they don't seem to be getting back to me after leaving messages at the moment - no wonder.
    The problem was the amount of autonomy and lack of taking responsibility by their Nomonee/custodian partner that concerns me - and I cannot find much about them on the web - although they are all registered with FSA and filings up to date on Companies House .  We are hanging fire to see what happens. 
  • Check out latest article in Investors Chronicle 

  • wmb194
    wmb194 Posts: 5,215 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 29 September at 7:46PM
    Oldhead45 said:
    Check out latest article in Investors Chronicle 

    It doesn't really say very much:

    "...stockbrokers GHC Capital Markets, Pilling & Co and Capital Financial Markets have said they would take on the accounts following Interactive’s decision.

    ...

    Among DIY platforms, only Interactive Brokers said it was able to take on new club accounts. But on a ShareSoc forum, some club members reported struggles with actually opening an account. The application seemingly required a “legal entity identifier” number, which some investment clubs may need to apply for."

    Stockbrokers step in to save investment clubs


  • Since the ii announcement, has anyone on this forum been successful in opening a new account for their investment club?
  • Dorcots, thanks for the link to the IBKR podcast. At least CEO Gerry Perez has confirmed that they will accept Investment Clubs.  As for our Account Application, I'm still struggling.  Having thought I was there they have now come back and said there was an error on my original application, (without telling me what it was), and questioning proof of ownership. So, I'll get back to them to find out what I need to do, and post here in due course.
    Anyone else succeeded in opening an account with IBKR yet?
  • Thanks again Mr Calvert. We await with bated breath for more news.
    We were in touch with HMRC and they suggested we gave IBKR one of our personal UTRs as it was actually no use to them! So maybe you may not have done anything inadvisable.! I wonder- if we gave them a made up one what could happen?
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