My friends and I would like to start a collective investment group, with one of our group being very good at Forex trading and can provide a decent return on the fund. My question is, is this legal? The way i can see would be that I can register as a self certified HNWI (2nd property, plus liquid funds over £250k), and allow him to trade as a sole trader with some of my money. This would not be an advertised scheme just private. Would this be the legal way of doing it? Or would the trader have to be a company with FSA licence? TIA!!!
I think the process can vary depending on the country, but fund managers are generally legal and must be regulated by the respective country’s Securities and Exchange Commission, (at least it’s this commission for the Philippines) 
Judging by the currency, I’m assuming you’re from the UK? 
I think we have a lot of friends here from the UK who can help but it might also be a good idea to look through this:
Thank you! But yes you are right it is in the UK. I will have a look at this topic thanks ever so much!!
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Good luuuck! 
I’m not an expert on this matter, but I hope more people jump in to share their knowledge to help you and your group of friends out. Just curious though, only one person in the group is a profitable trader?
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Haha yes at the minute, but I hope to learn as a part of this process. He has demonstrated an ability over the past 2 years of a 3% monthly yield on average, but he doesn’t have the funds to invest seriously, whereas my other friend and I can. If i can learn it then we can multiply our efforts though!!
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Good luuuuck! I hope you’re really determined to learn about forex trading. It might take a while before you can become a profitable trader experienced enough to manage funds, but I wish you all the best!
Thank you , hopefully in some months i can come back to you and share some kind of success story!
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In the UK you cannot legally just take other people’s money and invest it for them without various legal registrations, agreements and possibly licencing by the FCA.
In addition, many brokers, banks etc. in the UK will not accept deposits unless you can prove where you got the money from, and also that you have sufficient income to cover their risks in accepting a large deposit. These rule sin the firms’ T&C’s may be driven by their own regulatory requirements or by their wish to avoid anti-money laundering suspicions or a simple commercial wish to avoid unquantifiable liabilities to third parties who they don’t even know and have not approved.