Stockbrokers for Investment Clubs Sep’25

Sky_Dragon

@johncalvert Thanks for the updates. As I said in my earlier posts, Gerry Perez says they have some informatioin they can email over, but I've been unable to get hold of it as the emails (in both directions) don't seem to be getting through.
In the absence of that, can you confirm you started the process via their online "Business/Organization" type application, as I may as well start the application even if it comes to nothing.

johncalvert

@Sky_Dragon That is how I started the application, so just have a go.

johncalvert

Thought we were there, but no.  Today's question: "Please provide details on the membership process including how new prospecting members become aware of the investment club and the specific criteria needed to be accepted as a member." We will keep trying.

findthetruth

johncalvert said:

Thought we were there, but no.  Today's question: "Please provide details on the membership process including how new prospecting members become aware of the investment club and the specific criteria needed to be accepted as a member." We will keep trying.

I have finished my application but so many of my answers were nonsense and I’m not sure they will accept the uploaded documents. You appear to be close……

PipneyJane

Thank you all for sharing your experiences.  This is most frustrating!

Personally, I've spoken to several stockbrokers and none are willing to take on my investment club.  There are only three members left and we haven't added new money in years but all of us would be hit with capital gains tax if we liquidated. We've decided to go down the create-a-trust-deed-and-hold-the-shares-under-one-name route.  (Yes, one member has a law degree. Not me.)    Grrr.....

@MSE_Martin @MSE_James and @MSE_ForumTeam5 can you do something to raise the plight of Investment Club investors?  Many on this thread have been investing for decades via a club and now the last remaining broker (ii) is withdrawing from the market.  We have until the middle of the month to find a new broker.  HELP!!

- Pip

phlebas192

PipneyJane said:

Thank you all for sharing your experiences.  This is most frustrating!

Personally, I've spoken to several stockbrokers and none are willing to take on my investment club.  There are only three members left and we haven't added new money in years but all of us would be hit with capital gains tax if we liquidated. We've decided to go down the create-a-trust-deed-and-hold-the-shares-under-one-name route.  (Yes, one member has a law degree. Not me.)    Grrr.....

@MSE_Martin @MSE_James and @MSE_ForumTeam5 can you do something to raise the plight of Investment Club investors?  Many on this thread have been investing for decades via a club and now the last remaining broker (ii) is withdrawing from the market.  We have until the middle of the month to find a new broker.  HELP!!

- Pip

If you take advantage of Interactive Investor's offer to transfer the shares to individual trading accounts in direct proportion to your holdings then you will not incur any immediate CGT liability. 

Sky_Dragon

findthetruth said:

johncalvert said:

Thought we were there, but no.  Today's question: "Please provide details on the membership process including how new prospecting members become aware of the investment club and the specific criteria needed to be accepted as a member." We will keep trying.

I have finished my application but so many of my answers were nonsense and I’m not sure they will accept the uploaded documents. You appear to be close……

@johncalvert @findthetruth did either of you have to provide the full details of all members as Directors/Control person/Owners as part of the application with IBKR? I know this info will need to be provided at some point, but I wanted to check if you had been asked for this up front, or provided it later in later in the process, as it may take me a while to collect that and I wanted to be gathering other information in parallel.

artyboy

johncalvert said:

Thought we were there, but no.  Today's question: "Please provide details on the membership process including how new prospecting members become aware of the investment club and the specific criteria needed to be accepted as a member." We will keep trying.

As someone that has run client onboarding teams in financial services, I'm rather surprised that they can be bothered with all this back and forth with you - it's costing them time/effort/money in terms of analysing your information through many iterations of questions. Which suggests a couple of things might be happening here:

- they are using you as a detailed KYC test case to see whether it's worth them offering this services to investment clubs (or whether you are just outside of their risk appetite)
- if they do take you on, you might find that the fees end up higher than for a more mainstream corporate account, because they will likely be treating you as a high risk client, with greater ongoing review requirements.

So I wish you luck, but I'm getting nothing warm and fuzzy from what I'm hearing... and as for anyone thinking that Martin would take up this cause, bear in mind that this is a risk based commercial arrangement - no broker is obligated to take on a client that doesn't meet their criteria, and I can absolutely see the red flags in a typical Investment Club type structure. It's not in the same 'corporate social responsibility' league as banks being expected to provide basic account services to the otherwise disenfranchised.

Floxylady

LIC2000 said:(a fewdays ago)

In looking for alternate brokers our club has been asked if we registered with HMRC. The club was formed in 2000 and has been through a number of chairman, secretaries and treasurers and we are currently trying to trace the original registration if it existed at all.

I was wondering if anyone knows if it was a requirement to register with HMRC back in 2000 or the requirement came later and if other clubs did register.......................................................

We set up our club in 2005 following all the guidance and using proformae from Proshare.  We never registered with HMRC - it was not a requirement.  I think at that time we were just expectd to report to HMRC if we made a gain - either Capital or interest.  We carried on trading without registering but on receipt of the annual certifiate from initially The Share Centre then ii - each reported individually to HMRC if appropriate.
Regarding Application forms - we have completed application forms from CFM and have been sent an Agreement to sign.  We  just going through all the legal terms etc with a final vote coming up later this month hoping for the OK from all members to proceed.
Like with othr brokers mentioned it's a slow process.  We have not been asked for an LEI number.  We are a small club and not been doing too well lately - have so sold all our holdings and will start with a clean slate once we are up and running.
We will fight to keep the IC flags flying!!

PipneyJane

phlebas192 said:

PipneyJane said:

Thank you all for sharing your experiences.  This is most frustrating!

Personally, I've spoken to several stockbrokers and none are willing to take on my investment club.  There are only three members left and we haven't added new money in years but all of us would be hit with capital gains tax if we liquidated. We've decided to go down the create-a-trust-deed-and-hold-the-shares-under-one-name route.  (Yes, one member has a law degree. Not me.)    Grrr.....

@MSE_Martin @MSE_James and @MSE_ForumTeam5 can you do something to raise the plight of Investment Club investors?  Many on this thread have been investing for decades via a club and now the last remaining broker (ii) is withdrawing from the market.  We have until the middle of the month to find a new broker.  HELP!!

- Pip

If you take advantage of Interactive Investor's offer to transfer the shares to individual trading accounts in direct proportion to your holdings then you will not incur any immediate CGT liability. 

Thank you @phlebas192, I didn’t know that dividing up the club evenly was an option.  (I’m not the primary contact at ii and a certain person made assumptions without talking to us.). We have discussed it this evening and will open accounts, then split up the shareholdings.

- Pip