The death of share clubs
Discussion
I have just found out that the share club I belong to is being forced to close down at ii are the last trading company to support share clubs and they are withdrawing support due to the extra burden.
Here is an ai summary from Google relating to a recent Telegraph article (I have not read it due to the paywall):
Investment clubs are facing closure due to Interactive Investor, the last major broker to accommodate them, ending their services, forcing many clubs to disband. This leaves members, who find social value and a learning environment in clubs, with limited alternatives, such as converting to expensive limited companies or liquidating their investments.
Why Investment Clubs are Closing:
Interactive Investor's Decision: Interactive Investor announced it would close accounts for investment clubs, leaving them with no major platforms to use.
Lack of Alternatives: Many clubs are struggling to find other brokers willing to take them on.
Consequences for Clubs: Clubs are left with options like liquidating their investments, which is a "real pity", or attempting to convert to a limited company, a process that is often costly and complex.
What This Means for Members:
Loss of a Vital Service: Members risk losing a service they rely on to manage their investments collectively.
Social Disruption: Investment clubs provide a key social function, fostering friendships and learning experiences, which will be lost.
Potential Tax Issues: Members may also face the risk of large tax bills if they are forced to sell up their investments due to the lack of a platform.
What You Can Do:
Contact Other Brokers: The article suggests reaching out to other small organizations, though some clubs are hesitant due to perceived risks with very small outfits.
Explore Alternatives: Consider if converting to a limited company is a feasible option for your club, but be aware of the associated costs and complications.
Liquidation: If no other option is available, the final alternative is to liquidate all the holdings in the club, though this is seen as a regrettable outcome.
End of AI summary
This is a real shame, as the club I belong to has been going since 2002 giving a bunch of us a great excuse to go out for a curry once a month and also paid for my second ownership of my Chimaera!
The club secretary has not found any finance companies who will take on share clubs, so I am asking the PH hive mind if there are any other alternatives? Has anyone tried to say, just create a shared spreadsheet of shares for people to track on their own trading accounts? Any other suggestions? Cheers!
Here is an ai summary from Google relating to a recent Telegraph article (I have not read it due to the paywall):
Investment clubs are facing closure due to Interactive Investor, the last major broker to accommodate them, ending their services, forcing many clubs to disband. This leaves members, who find social value and a learning environment in clubs, with limited alternatives, such as converting to expensive limited companies or liquidating their investments.
Why Investment Clubs are Closing:
Interactive Investor's Decision: Interactive Investor announced it would close accounts for investment clubs, leaving them with no major platforms to use.
Lack of Alternatives: Many clubs are struggling to find other brokers willing to take them on.
Consequences for Clubs: Clubs are left with options like liquidating their investments, which is a "real pity", or attempting to convert to a limited company, a process that is often costly and complex.
What This Means for Members:
Loss of a Vital Service: Members risk losing a service they rely on to manage their investments collectively.
Social Disruption: Investment clubs provide a key social function, fostering friendships and learning experiences, which will be lost.
Potential Tax Issues: Members may also face the risk of large tax bills if they are forced to sell up their investments due to the lack of a platform.
What You Can Do:
Contact Other Brokers: The article suggests reaching out to other small organizations, though some clubs are hesitant due to perceived risks with very small outfits.
Explore Alternatives: Consider if converting to a limited company is a feasible option for your club, but be aware of the associated costs and complications.
Liquidation: If no other option is available, the final alternative is to liquidate all the holdings in the club, though this is seen as a regrettable outcome.
End of AI summary
This is a real shame, as the club I belong to has been going since 2002 giving a bunch of us a great excuse to go out for a curry once a month and also paid for my second ownership of my Chimaera!
The club secretary has not found any finance companies who will take on share clubs, so I am asking the PH hive mind if there are any other alternatives? Has anyone tried to say, just create a shared spreadsheet of shares for people to track on their own trading accounts? Any other suggestions? Cheers!
The one thing worse than paying a financial advisor to manage my shares would be to have 5-10 or whatever other people involved. Keep the club as a club and just have your own share accounts but still meet up and talk about it etc? I assume there are no financial benefits of being a club are there?
Spunagain said:
This is a real shame, as the club I belong to has been going since 2002 giving a bunch of us a great excuse to go out for a curry once a month and also paid for my second ownership of my Chimaera!
You can still do that.Given the huge amount of information on the Internet and the millions of forums people can do their own research until the cows come home. Also it's incredibly easy to buy and sell shares now (whereas in the old days it was probably much harder)
Thanks for the replies!
There are some platforms which will support share clubs but the costs are high:
https://www.investorschronicle.co.uk/content/713a4...
But we decided to call it quits and will close it off at the curry house next month to sign off the accounts and approve the distributions.
Oh and to launch the inaugural session of the newly formed Curry Club!
There are some platforms which will support share clubs but the costs are high:
https://www.investorschronicle.co.uk/content/713a4...
But we decided to call it quits and will close it off at the curry house next month to sign off the accounts and approve the distributions.
Oh and to launch the inaugural session of the newly formed Curry Club!
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