anyone knows whether a proprietary trading firm needs FCA regulation in the UK or not?

I am looking to setup a proprietary trading firm in London. anyone knows whether a proprietary trading firm needs FCA regulation in the UK or not?

And is the company allowed to recive any invests from the outside? For instance, my friend wants to invest my company.

So many thanks.

 

Set up an IB friends and family account. You can have 15 sub accounts without registering with anybody.

https://www.interactivebrokers.com/en/index.php?f=friendsFamilyAccounts&p=more

 

in US, yes. But in UK, it doesn't work.

 

Why not?

 

I phoned FCA. They said that I need to be a IFA first otherwise it is illegal.

 

You can open up an IB friends and family account from the UK. IB UK LTD is FCA registered.

 

I am not a Lawyer (though in my pre self employed days I was FCA registered myself). But if you read the FCA website you need to be registered if you are carrying on a regulated activity (which this obviously is) and by way of a business. The obvious interpretation is that if you are charging for your work through a performance or management fees then its a business and you need to register. If it's just friends and family, and you receive no feeds, then it isn't a business and no registration is required.

Note I believe that this doesn't preclude me employing my mate John to manage my money and paying him a salary, or even a percentage of the profits (which is why prop firms aren't registered). But it would mean that John couldn't set up a limited company and then charge me a fee to trade my capital.

 

out of all the places in the world you can setup, why would you want to setup in the UK? Just curious..........