Can i legally invest other peoples money without being fsa registered?

[han]

i have friends and family who would like me to invest their money on the stock market for them, in return i would get for a commission for myself as a percentage of the profits. i know i could get them all to create their own online portfolio and have access but that would not be practicle. if i were to accept deposits from them and invest is it the law that i have to be fsa registered or just an industry standard? Also, could i accept deposits in the form of loans from family thus allowing me to then invest the money as my own to make use of capital gains allowances and pay less tax, then pay back the loans with a variable interest rate dependant on how the stock performs? any help would be much appreciated, thank you.

[fyfe]

no
and you would also not be able to accept their money to invest. (cos you would have to be a "bank")

[khalid]

The best way is for them to have a broking account with you as third party giving instructions. You got to be careful if you are giving them investment advice. If it goes wrong they could sue you.

[kendrix]

The best way is for them to have a broking account with you as third party giving instructions. You got to be careful if you are giving them investment advice. If it goes wrong they could sue you.

NO, if you give advice, especially for compensation, you must be registered.

If you had them all open brokerage accounts and have give you access, this is illegal. When they open the account they define who is to have access. For you to have access is one thing but for you to have discretionary authority is something else which, unless you had an agreement on file with the firm, would be illegal.

No you can not accept deposits and use the money as if it were you own - also illegal