Thinking of starting a money management firm?
Monday, September 28th, 2009 at
1:23 am
peter p asked:
ive had good success over the past 5 years trading my own personal account in equities, bonds, currencies and commodities (average return of 30% per year….including last year, when i was up 40%). a couple fo friends of mine have expressed interest in giving me a portion of their money to manage/trade for them, in return i will keep 10% of the profits.
ive had good success over the past 5 years trading my own personal account in equities, bonds, currencies and commodities (average return of 30% per year….including last year, when i was up 40%). a couple fo friends of mine have expressed interest in giving me a portion of their money to manage/trade for them, in return i will keep 10% of the profits.
what kind of firm do i set up to legally do this? i want this to be completely legit and not some sort of BS madoff firm. what kind of licenses, if any, do i require (i used to have a series 7 and 63, but theyve expired now).
many thanks
Tagged with: Good Success • Many Thanks • Profits
Filed under: Commodity Trading
Like this post? Subscribe to my RSS feed and get loads more!
You will probably need a Series 6 and 66. And register with your state securities regulation agency. Contact them or finra.org. You dont need to register with the SEC unless you manage more than 25 million dollars. But you do need to register with your state. FINRA handles investment advisors.
You don’t need a 7 or 63 since you won’t be selling. You will need to be a Registered Investment Adviser according to SEC rules.
You do not require and can NOT have securities licenses active.
Madoff was/ is a ponzi scheme. There was nothing legit about him.
There is a ton of things you need to do. The biggest problem with what you want to, is not want to have people in your fund who are not “accredited investors.”
Details on these definitions in my 360 blog–?cq=1
If you do not want to set up a private (hedge) fund, you can always just have a separate written and signed agreement with “Trading Authorization” over a brokerage account.
If your record is that good, I would set up a hedge fund. Too much to list here. I have posted this info in my prev answers somewhere.
10% of the profits? Most average managers charge 20% or more. Better managers charge 30%. I have seen as high as 5% of principle and 50% of profits. They deliver.