[Mark Bentley]

Another boutique brokerage has indicated that they may be prepared to offer a service for investment clubs.

The firm is GPIM Limited

You’ll need to do your own due diligence and further details can be obtained from Director of Investments Ed Hill-Smith ehs@gpimlimited.com

[Mark Bentley]

FYI, another boutique brokerage has stepped forward to offer a service to investment clubs: GHC Capital Markets Limited.

They’re also quite small, turning over £2.1m in 2023/4.

[Mark Bentley]

In reply to reply #32111

Thanks John,

That’s most helpful.

We’ve just published a news article on this: https://www.sharesoc.org/sharesoc-news/investment-clubs-under-threat/ . Feel free to comment on the article with your experience.

Best,

Mark

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[Mark Bentley]

Hi Mark,

We haven’t yet pursued ii to seek an extension, as ISTM that doing so only makes sense if there is a viable alternative.

So, if someone can get back to me with the results of trying to open an account with Interactive Brokers (or another provider), ShareSoc can approach ii to seek some more time for transfers to take place.

I am working on an article for ShareSoc’s website, offering guidance/suggestions for investment clubs.

Best,
Mark

[Mark Bentley]

In reply to reply #31987

Thanks Sandy, I look forward to hearing how you get on.

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[Mark Bentley]

In reply to reply #31985

Sorry to hear that, Richard.

Note that SIGnet offers an alternative to investment clubs. SIGnet groups allow for similar investment discussions to those that a club would hold, and social interaction, but without investing jointly: each group member makes their own investment decisions.

Would anyone else here like to try the IBKR route?

I am keen to make clubs forced to depart from ii aware of that alternative, if it works.

Thanks,

Mark

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[Mark Bentley]

Unfortunately, AJ Bell have confirmed to me that they will not be launching a product for investment clubs, as they think the market for such a product is too small to justify the investment they’d need to make.

Sorry,

Mark

[Mark Bentley]

Thanks Rich,

Will be most interesting to see what response you receive.

Best,

Mark

[Mark Bentley]

Hi,

I had a productive conversation with AJ Bell this morning.

It appears that the principal reason that platforms are struggling to offer investment club accounts is a requirement to conduct annual anti-money laundering (AML) and politically exposed persons (PEPs) checks on club members. Whilst platforms have streamlined and automated this process for individual accounts, it currently has to be done manually for each of the members of an investment club.

We discussed a way of streamlining this process by requiring all club members to also open individual accounts with AJ Bell – the checks on each member could then be done using the automated processes AJ Bell already has in place.

Another query that AJ Bell raised is that they have to report transactions to the stock exchange and to do that for a club, each club would need to have an LEI. Do clubs currently have LEIs?

To provide a service for investment clubs, AJ Bell would have to launch a new product, requiring significant investment on their part. Whilst I emphasised the demand for such a product; other benefits accruing to AJ Bell; and we discussed the possibility of bulk transferring ii’s investment club accounts to AJ Bell, my impression is that it was somewhat doubtful whether AJ Bell will be willing to launch this new product.

However, AJ Bell suggested that Interactive Brokers (IBKR) may offer a service for investment clubs. I have been in touch with IBKR and their agent wasn’t entirely sure whether they offer such accounts. The agent said that the mechanism for opening such an account would be to request an “institutional” account and to send an accompanying message to say that the account was for an investment club. So, if anyone is willing to try this, we can find out whether IBKR will indeed offer a service.

I hope that this proves helpful and will stay on the case.

Best,

Mark

[Mark Bentley]

My meeting with AJB is now scheduled for next Tuesday.

I’ll advise here what the outcome is.

Best,

Mark

[Mark Bentley]

In reply to reply #31899

Thanks Mark,

No, don’t think I need details at this stage.

Best,

Mark

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[Mark Bentley]

I’m pleased to advise that AJ Bell have agreed to meet – we just need to find a mutually convenient date/time.

[Mark Bentley]

Thanks for the information posted here.

I have also been in touch with a senior executive at AJ Bell and have requested a meeting to discuss how ShareSoc could help AJ Bell to provide an offering for investment clubs.

I’ll advise on any progress we make here.

Best,

Mark

[Mark Bentley]

Thanks for the comments, all.

ShareSoc’s board is looking at actions we could take to help alleviate this situation.

Best,

Mark

[Mark Bentley]

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