Stockbrokers for Investment Clubs Sep’25

12Saver3

Has anyone experience of using CFM?

bompom

From a report on the ShareSoc thread of a meeting with AJ Bell on Tuesday, it seems unlikely that you will offering a product because of the costs and investment needed, nevertheless we have registered our interest.  Meantime one of members has just received this response from Pilling&Co:
"Thank you for your patience thus far, whilst we have been reviewing our procedures for investment club accounts.

We have received quite a number of enquiries in relation to investment club accounts and have been made aware that a deadline of the 27th of October has been given by the existing provider of these investment club accounts. Many regulations have changed, or been introduced, since Pilling & Co last opened an investment club account, meaning a thorough review of the process was a necessary step before we were able to make any decisions.

We have now completed this review and can confirm that we will be offering services to new Investment Clubs. We expect to be in a position to provide the application form, charges, and any other information, tomorrow afternoon – Friday the 12th of September.

We thank you again for your patience and we are looking forward to helping you, and your investment club.".
Their existing trading charges (1.65% on 1st 10k) are not attractive, so it will be interesting to see tomorrow whether their revised product is a better or worse deal.

MorGra

Do we think it's significant that they say "new Investment Clubs"?
Not existing clubs?

ShareClubber

I am the deputy treasurer for a 30-year-old share club. This forum has been very informative.  Has anyone considered setting up a trading account in the name of one member?  I imagine the club members would need to sign some sort of agreement to protect the interests of each member and the one holding the account.  It would need to address tax liabilities, repayment of funds to members and what happens if the account holder leaves or dies.

johncalvert

There may be another solution.  One Investment Club have had a positive response from Interactive Brokers (IBKR).  Seems you need to speak to the right person.  Here is the reply from [Removed by Forum Team].  I haven't tried to open an account yet.  Waiting to see if anyone is successful first. Please post if anyone does get a positive result. 
[Removed by Forum Team]

Hello [Removed by Forum Team],

Thanks for your email.

Please follow the link below to start an application for a proprietary trading account. This is the type of account for investment clubs. Please go to Institutions -> Business/Organization,

https://www.interactivebrokers.co.uk/Universal/servlet/formWelcome?p=100&atype=ORG&ibsrp=609

At the end of the application, you will have the option to upload the documents. We will need,

Proof of existence
Proof of principal place of business
List of partners in the investment club
Proof of address and identity for all the partners in the investment club
LEI number for the investment club

Please contact me should you have any doubt during the application.

Best,

[Removed by Forum Team]

jimjames

MorGra said:

Do we think it's significant that they say "new Investment Clubs"? Not existing clubs? 

No, I don't think it's significant. Sloppy wording if anything but I suspect it means new accounts rather than new clubs as they have offered such accounts previously

MorGra

Pilling & Co - first glance
There doesn't seem to be an online trading facility - you have to phone a dealer.
There's no word of limit orders.
I can't find where the charges are detailed - maybe someone can advise?
The new client application form is a broken link.
I'm off to email them.

greybags

I have received an email from Pilling with application forms, list of charges and other requirements. Broadly;
1.65% commission up to £10,000
member onboarding £50 plus VAT per head up to £500 (no limit on members though) and £50 per change
Custody fee £90 every 6 months 
More significantly perhaps, they require an "acceptable" constitution and for us to register with the HMRC Trust Registration Service. Feels like they are pushing us to look like a more formal "bare trust". 
Is anyone familiar with the HMRC Trust Service and the implications of signing up to it?

MorGra

Thanks, greybags, I think that's all I need to know.
Way, way too expensive, and the "HMRC Trust Registration Service" sounds like a right can or worms.
We won't be going there.
Hey Ho.

poseidon1

greybags said:

I have received an email from Pilling with application forms, list of charges and other requirements. Broadly;
1.65% commission up to £10,000
member onboarding £50 plus VAT per head up to £500 (no limit on members though) and £50 per change
Custody fee £90 every 6 months 
More significantly perhaps, they require an "acceptable" constitution and for us to register with the HMRC Trust Registration Service. Feels like they are pushing us to look like a more formal "bare trust". 
Is anyone familiar with the HMRC Trust Service and the implications of signing up to it?

Distinctly odd that Pilling are pushing investment clubs in the direction of trust registration, when HMRC themselves have no such requirement for properly constituted and compliant clubs as set out in their guidance below -

https://share.google/VLcUpIdjeSXSUGbSS

Certainly if clubs are producing the annual member's investment club certificates ( in HMRC format) for individual tax compliance purposes, that should ( as far as tax is concerned) demonstrate the club is HMRC compliant without any additional HMRC interactions.