Investment Clubs Under Threat

ShareSoc and SIGnet are here to help

For quite some time it has become increasingly difficult to open dealing accounts for investment clubs, with ever fewer platforms offering the service. Matters have now come to a head, with interactive investor withdrawing its service and requiring its investment club clients to either close their accounts or transfer to another provider.

ShareSoc and SIGnet have been asked for help by members who participate in investment clubs.

Possible platform solution

We have been in contact with a major platform, encouraging them to provide an offering. Regrettably they have declined to do so, due to the requirement for all club members under each account to be vetted annually against anti money-laundering (AML) and Politically Exposed Persons (PEPs) criteria.

Whilst automated mechanisms are in place for individual client accounts, the process would have to be undertaken manually for club members, causing excessive costs and complications for the platform.

We have explored other alternatives, and it appears that Interactive Brokers (one of the largest investment platforms globally) is prepared to offer accounts to investment clubs.

To open a club account with them, an investment club will first need to obtain an “LEI”. London Stock Exchange Group offers an LEI provision service, available here: https://www.lseg.com/en/data-analytics/market-data/data-analytics-pricing/data-symbology/lei. Several other providers are available.

Once you have an LEI, you can proceed with an application for an Interactive Brokers account at: https://www.interactivebrokers.co.uk/Universal/servlet/formWelcome?p=100&atype=ORG&ibsrp=609

Select “Institutions” on the left-hand side of that page.

Interactive Brokers’ sales agent says:

“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”

We would be delighted to hear from any clubs that go through this process – whether successful, or not. Just provide your feedback through the comments section beneath this article. If you need support to complete the account application process, we can provide contact details of the relevant Interactive Brokers sales agent.

Once we know that clubs have been able to complete this process successfully, ShareSoc will prevail on interactive investor to extend their 31st October deadline to allow time for transfer of club assets.

Alternative solution

Alternatively, if continuing to run an investment club is becoming too daunting, there is a similar and simpler alternative route.

SIGnet (part of ShareSoc) is a national network of individual investors who meet regularly in groups to discuss investment in quoted companies, investment trusts and ETFs. SIGnet groups have many similarities with investment clubs, the primary difference being that the group does not invest collectively – all members make their own decisions on how to invest their own portfolios. For most, that brings the advantage that funds can grow tax free in an ISA and / or SIPP.

SIGnet has over 50 groups across the UK, each group typically having 10-15 members. Groups meet when and where is suitable for their members. We are growing, adding approximately 1 new group every month.

We are already in the process of converting one investment club to a SIGnet group, and are in the early stages with a second. We would welcome a discussion with any other clubs which might be interested in doing likewise.

SIGnet members take their investing seriously but, as with investment clubs, there is also a strong interpersonal element, and many longstanding friendships that form. The network was formed 27 years ago and many of the original groups remain; we still have founding members as regular attendees.

SIGnet brings several advantages to investment clubs who decide to convert: a proven track record of recruiting new members and administering groups; organised visits to investee companies; knowledge sharing across the group and the network; a monthly newsletter; and the SIGnet Challenge, a fantasy investment competition in which groups compete for an annual prize – not quite the same as investing collectively, but a structure in which to design a collective portfolio. Although most of our groups are generalist, discussing all aspects of investing, we have several specialist groups which might appeal to some – e.g. US, UK Small & Mid Cap, and several income investing groups.

If you are a member of an investment club and think your club might consider becoming a SIGnet group, please contact us to arrange a call with Bill Fawkner-Corbett (Head of SIGnet), who can provide more details and answer any questions.

Post Date: September 24, 2025

John Calvert says:

24th September 2025 at 4:42 pm

Our Investment Club is going through the process of applying for an account with Interactive Brokers (IBKR). I have to say it is quite tortuous, and I wouldn’t have been able to do it without help from Interactive Brokers sales staff.
As for an LEI, I stated we didn’t have one, and the application offers that Interactive Brokers will apply on our behalf. Watch this space.
So, we have reached the stage where our application for an account is in, and now waiting approval.
No doubt there will be more questions along the way, but I will keep you informed of progress.

Nick Williams says:

25th September 2025 at 11:19 pm

We have posted comments on the sme forum about IBKR and with reference to John Calvert’s experience.
The LEI is not a problem. The sticking point is their demand for a UTR which, of course, clubs don’t normally have, but they are obtainable for unincorporated associations if they pay corporation tax!.
The application can be progressed if one enters one’s own UTR but this might be unwise.
We await news…..

26th September 2025 at 9:32 am

Update. We are making progress. This morning I’ve been asked to fund the account to obtain an LEI. They have also asked for a full list of members, (so far only got my details), and proof of ownership. So, not over the finish line yet, but it’s looking more hopeful.

Mark Bentley says:

26th September 2025 at 9:37 am

Thanks John,

That’s good to hear.

How did you resolve the UTR issue that Nick raises?

Best,

Mark

Mark Bentley says:

29th September 2025 at 11:19 pm

ShareSoc has been contacted by boutique brokerage GHC Capital Markets Limited. They’ve indicated that they’re prepared to offer a service to investment clubs.

They’re a small firm, so anyone considering using them would need to do their own due diligence before opening an account.

Best,

Mark

30th September 2025 at 11:00 am

Interactive Brokers’ UK CEO has confirmed that they will offer accounts to UK investment clubs: https://www.interactivebrokers.eu/campus/podcasts/ibkr-podcasts/ibkr-unfolded-the-swiss-army-knife-of-investment-clubs/

4th October 2025 at 9:45 am

Morning everyone. I’ve been hanging back, hoping I’d be able to tell you we had succeeded in opening an account with IBKR, but we are still not quite there yet. Problem is they are busy, so they ask a question, we reply, then it can be two days before that’s looked at, then another question, etc. so it takes time. Do persevere.
So, right now we have answered all their questions, ticked all the boxes, provided all the information, and got the green light on Friday that we could fund the account, though the application is still awaiting final approval, so I’m hopeful.
We had to provide constitution, proof of authority to open an account, photo ID of officers, full list of members with percentage held by each and complete a W8-BEN.
Nothing happens over the week-end so I’m hoping to get final approval Monday or Tuesday, when I’ll report back either way.

Cliff Kane says:

6th October 2025 at 10:59 am

A UTR appears to be an individuals reference number so each club member would have to register for self-assessment in order to obtain one. Constitution, authority, photo ID (can this be photocopy of drivers licence), members and percentages are all fairly easy to sort out. But, does the W8-BEN need to be signed by all members?

John Brookes says:

8th October 2025 at 4:48 pm

Hi, I’m treasurer of our local Investment Club and finding your experiences very helpful.
I’ve succeeded in getting an LEI, but the rest of the IBKR application process is proving tortuous. When I’ve called it tends to get diverted to India or Switzerland, who don’t appear to be up to speed with UK CEO Gerry Perez desire to sign up Investment Clubs.
In the section ‘Purpose of Entity’ none of the 5 options appear to align to Investment Clubs…John as you seemed to progress reasonably, which one did you choose?
I can see that providing UTR’s for all individual members will be administratively problematic.
Anyway any further advice would be gratefully received.
Thanks
The section Purpose

Mark Bentley says:

8th October 2025 at 6:21 pm

Hi John, If you contact our office, we can provide contact details for a specific Interactive Brokers sales agent who is knowledgeable about UK investment clubs.

Best,

Mark

Ed Hill-Smith says:

9th October 2025 at 7:56 am

My firm maybe able to assist. See the website https://www.gpimlimited.com/.

The easiest thing would be to send an initial email to myself at :
ehs@gpimlimited.com for further discussion.

13th October 2025 at 8:50 am

@John Brookes Sorry for not replying sooner, but only just checked here again. In my conversation with IBKR they acknowledged they didn’t have an option for investment clubs. I was told it didn’t matter which I selected, as IBKR already knew we were an Investment Club. So, go with the nearest one. John
PS Our application is accepted. Now waiting approval.

16th October 2025 at 1:18 pm

Well, it’s over with Interactive Brokers for us. I received an email from them this morning stating “We require investment clubs to have a legal personality, an UTR and LEI. If you don’t have a legal personality, the applicant is going to be rejected.”
This was closely followed by a rejection email.
I guess this is because an Investment Club is a loose association of friends/investors who each take responsibility for their own tax affairs, so does not comply.
So we now have to find another broker, or call it a day. Just a shame it took them three weeks to arrive at this decision.

Group description:	Our group discuss a wide range of income generating instruments. Quoted dividend paying companies are usually the biggest topic for discussion; but we also discuss dividend paying Investment Trusts (including REITs) and ETFs, bonds (government and corporate), and preference shares.
Meeting Type/Venue:	Meetings are held online via Zoom.
Meeting Frequency/Timing:	Monthly on the 1st Tuesday of the month, from 6:30pm.

Group description:	The aim of this group is to share our investing ideas and experiences across all equity markets, brokers, websites and software to the benefit of us all. We do not discuss sums of money invested but may mention percentages gained and lost. We will rotate the chairperson who is responsible for creating, with member’s help, suitable agendas. We also rotate members to deliver a presentation, lasting between 15 and 45 minutes, on a topic of their choosing.
Meeting Type/Venue:	Meetings are held online via video conferencing.
Meeting Frequency/Timing:	Monthly on the 3rd Tuesday of the month, from 2-4pm.

Group description:	We welcome anyone interested in investments regardless of their level of knowledge and experience.
Meeting Type/Venue:	Meetings are held in a function room of a pub in Beaconsfield New Town.
Meeting Frequency/Timing:	Monthly on the 1st Wednesday of each month at 6pm.

Group description:	Investors of all levels of experience are welcome to join the Farnham (Surrey) group. Convened by David Stredder, who will be known to many as the founder of Mello, organiser of in person investment conferences and virtual Mello Mondays. David is also a director at ShareSoc and has been investing in quoted shares since the 1980s, with a focus on UK small caps. He has an extensive knowledge of UK companies and network of contacts in the investing universe.
Meeting Type/Venue:	Meetings are held at a pub near to the railway station in Farnham, GU9.
Meeting Frequency/Timing:	Meetings are held monthly on the 2nd Tuesday of the month from 11am to 3pm with a break for lunch.

Group description:	Our Group considers both US Small Caps (up to $2bn Market Cap) and Mid Caps (up to $10bn market Cap). Meetings include discussions around buys / sells / watchlists, a short Macro discussion and discussions led by group members on companies or topics of their choice.
Meeting Type/Venue:	Meetings are held online.
Meeting Frequency/Timing:	Meetings are held on the 3rd Monday of the month from 7pm.

Investment Clubs Under Threat

ShareSoc and SIGnet are here to help

Possible platform solution

Alternative solution

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Group description:	Our group is interested in sustainable investing and our goal is to identify and evaluate businesses that will thrive through innovation and their transition to a ‘One Planet Economy’. By leveraging the skills of group members, we aim to deeply understand these businesses, particularly focusing on how they develop long-term valuable benefits for their customers. Each year, we plan to evaluate around seven businesses to identify opportunities where our valuation exceeds the market price. A successful outcome is defined as achieving a compound annual growth rate (CAGR), including dividends, of 10% over a decade.
Meeting Type/Venue:	Meetings are in-person in a pub near to Waterloo station in London.
Meeting Frequency/Timing:	Meetings are bi-monthly on a Monday from 10:45am to 4:30pm. Members are expected to also pay for their own lunch which secures the group free use of a private room in the pub. The cost is expected to be £35-40 per person, per meeting, in addition to your SIGnet membership fee.

Group description:	All levels of experience welcome. A typical meeting agenda includes: – Macro Environment – Trades: Members review existing positions and identify securities with promising TA entry patterns or setups and with suitable risk/reward. Any security, long, short, futures, options may be considered. The convener takes actual positions in trades and maintains his own detailed ledger, accurately measuring performance of individual securities and cumulative activity. Members are notified by e-mail prior to the entries or exits that are decided upon. Following each meeting an updated copy of the ledger is circulated together with the next meeting agenda. Members may wish to maintain similar ledgers of their own but there is no obligation to do so. – Technical Analysis: Techniques and systems used in trades. Members can request discussion of particular aspects of TA.
Meeting Type/Venue:	Online via Zoom
Meeting Frequency/Timing:	The first Tuesday of every month from 7 to 9pm

Group description:	Group focused on active investing, primarily in small / medium cap UK equities.
Meeting Type/Venue:	Regular Zoom meetings interspersed with occasional face to face meetings and social activities in the North West.
Meeting Frequency/Timing:	Monthly on Saturdays at 10am.