If you are doing it for one friend then although it is a grey area you probably don't need to be regulated. If you want to be regulated then you can either set up a regulated entity but this is expensive not only initially (FSA costs and legal fees) but also the ongoing costs. I can't see how in the scenario you describe this would be cost effective. Your'e best alternative if you want to go the FSA route is to approach an umbrella firm or a firm that is already regulated and ask them to make you an employee. You would need to compensate the firm for their regulatory risk but this may be in the form of a monthly fee or if you are lucky as a quid pro quo as you agree to transact all the business via them. Two points to remember - if you have no experience then the FSA will probably not grant you authority unless you take some exams first and it does not matter whhere the markets you trade are based - you are located in the UK so come under the FSA.
I'll gladly sit the FSA exams... Its registering an FSA firm that will hurt my wallet. Any ideas of umbrella firms that could assist in this regard?
Can you provide any names of firms that you are aware of acting as an umbrella in the UK and/or elsewhere, ie offshore for professional traders interested in managing opm? Does this usually involve conducting the business through them, ie brokering, clearing, administration, etc? Thanks