Stockbrokers for Investment Clubs Sep’25

Gunnista

Oldhead45 said:

We are in a queue at CFM who appear to be overwhelmed - they don't call back and I've yet to find out if anyone has been on boarded there.

Our CFM account went live a week ago.  Our portfolio transferred across from Int. Investor and we have carried out some Buys & Sells.  We have also extracted some cash today so all seems to work well.  Yes CFM are busy with quite a few transfers so be patient.  Interactive Investor are happy to maintain your account provided you have been accepted by a new provider and the transfer is “underway”.  Good luck

Oldhead45

Many thanks for that update - it gives hope to all of us who are in the queue.
Best of luck for the future.

Tanatclub

Oldhead45 said:

Many thanks for that update - it gives hope to all of us who are in the queue.
Best of luck for the future.

Our transfer to CFM was also completed yesterday. So good luck. 

findthetruth

https://www.qualitycompanyformations.co.uk/blog/self-assessment-requirements-for-limited-liability-partnerships/

LLPs do perhaps fit the bill.See above. They have a UTR.

NIC on income may be an issue. ATM only the parnership pays NIC but the budget may change that. For us, income is very small.

The members need to be listed on the registration. And their individual gains reported. This may, or may not, be an issue for them.

I have asked ii and AJ Bell if they will accept an LLP. I will ask IBKR when we get our final rejection (they have asked us to fund the account so as to expedite the application!!)

poseidon1

findthetruth said:

https://www.qualitycompanyformations.co.uk/blog/self-assessment-requirements-for-limited-liability-partnerships/

LLPs do perhaps fit the bill.See above. They have a UTR.

NIC on income may be an issue. ATM only the parnership pays NIC but the budget may change that. For us, income is very small.

The members need to be listed on the registration. And their individual gains reported. This may, or may not, be an issue for them.

I have asked ii and AJ Bell if they will accept an LLP. I will ask IBKR when we get our final rejection (they have asked us to fund the account so as to expedite the application!!)

On reflection I am no longer sure an LLP is  a viable replacement for the tried and tested investment club structure.

It seems to be me the clubs fall at the first post in terms of eligibility.  The statue giving rise to the LLP concept presupposes that it comprises at least two or more  individuals ' entering into business with a view to profit'.  This business trading aspect is further reinforced by the requirement that the LLP members pay income tax and national insurance on their trading income.

Frankly I struggle to see how amateur investment club activities can be viewed as  trading activity  rather than passive investing. If on a true view of its activity it is merely a passive holder of investments together with the passive income thereon, the following blog ( albeit vaguely ) suggests  corporation tax on the LLP maybe in point rather than the transparency of tax  reporting through to the partner which is the hallmark and benefit of an LLP. 


https://taxcareaccountancy.co.uk/article/simple-guide-llp-taxation#:~:text=If the LLP is not,Tax rules may still apply.

Seems to me any club contemplating the LLP route would  be well advised to seek specialist tax consultancy advice to explore  viability, both by way of eligible status and cost of annual Companies House/HMRC  compliance.

Oldhead45

CFM have sent us an email with an agreement attached to sign.

Sky_Dragon

Oldhead45 said:

CFM have sent us an email with an agreement attached to sign.

How long did that take from application submission? 

Oldhead45

About two weeks - a long nail biting wait

findthetruth

Re LLPs

This is my answer from AJ Bell. Our club is looking into LLPs. Looking at FCA regulation amongst other things.

“Good afternoon

Thank you for your email.

We are unable to accept applications for LLP’s on our direct-to-consumer AJB side of the platform, we can only accept limited company applications.

However, we are able to open LLP accounts on our adviser-led Investcentre side of the platform where we require you to have a financial adviser to run the account.

If you have any questions, please feel free to email us.

 

Yours Sincerely, “

 

poseidon1

findthetruth said:

Re LLPs

This is my answer from AJ Bell. Our club is looking into LLPs. Looking at FCA regulation amongst other things.

“Good afternoon

Thank you for your email.

We are unable to accept applications for LLP’s on our direct-to-consumer AJB side of the platform, we can only accept limited company applications.

However, we are able to open LLP accounts on our adviser-led Investcentre side of the platform where we require you to have a financial adviser to run the account.

If you have any questions, please feel free to email us.

 

Yours Sincerely, “

 

AJB may well accept LLP accounts on an advised basis, but that in no where suggests Investment Clubs can actually make a viable  transition to LLP status for the reasons stated. Cart before horse springs to mind.