Recent content by wesgttcpa

It's an interesting topic. Depending on what you do, you may have some regulatory issues, but this is not likely based on what I infer from your post. The question is, "How are you going to cover your expenses?" If you are going to be charging a flat seat fee, that's not a problem. You are...

I recently researched much this same issue for a client. The potential difference is that my client was looking to have a silent partner. I cannot tell from your posts whether you will only be sharing revenue or will also share ownership. If sharing ownership, the CFTC (the NFA said this...

I am not at all certain there is a cost efficient way to prove your record. And even once you have a proven track record, what does it get you? You cannot advertise it (if you want to keep your SEC exemption from registration as an Investment Adviser), and some people won't believe it...

The initial questions are really variations of what I had in the prior note, such as: Do I need to register as an Investment Adviser? Do I need to register with the NFA as a CTA? What is my personal liability? What happens if there is a problem and someone sues me? How much time will I...

Separately Managed Accounts might be an option, but it can become a can of worms. The issues that I see are: * Do you need to register as an investment adviser since you are participating in the profits? (if you do not participate in profits and are running these accounts out of the...

Once again, I agree with Foz. In the example you provided, the issue is not that you have the leads (or whether you paid for them), but what you do with them. Foz is also right on target in his advice to pay attention to the blue sky requirements. Check out Section 203(b)(3) of the...

Foz, that's fascinating. Thank you! I read that definition of Security from the Investment Company Act to encompass all types of futures. But there are many nuances, and the law (and its interpretation) is always changing! Kudos to you, too, for your posts. Willingness to share...

Foz, that's an interesting question. I do not know the answer, and I am not an attorney. I did go and look at the law, though. It's too lengthy to post all of it. You'll want to go to this page to make sure I'm giving you a full picture: http://www.law.uc.edu/CCL/InvCoAct/sec3.html...

There's no low limit on the investment number. Your typical hedge fund (the least expensive to prepare) can have up to 100 investors, and no more than 35 of those can be non-accredited investors. If you accept many investors with the low limit, you start bumping up against the maximum...

Take a look at this publication from the NFA: http://www.nfa.futures.org/compliance/dd2001.asp. It's lengthy, but excellent. A registered CPO is really much the same as a hedge fund. By doing a commodities hedge fund, you get the protection of the the exemption from securities rules under...

Hello, all. There are lots of strong opinions here and I think that many people have passed along perspectives from experience. Experience can be the best teacher. But having the entrepreneurial drive to go out and see for yourself is a powerful force. When we are driven to explore the...

Vhenn, it is not privileged information, but it is not a simple yes/no. It takes research. No, I do not have a chart for each state; there are too many variables. As I said before: Answering a "Must I register?" post is not something that can or should be done on a message board. It is an...

I'm responding while on the road, and will be doing so for the next several days. Sorry for the the delayed and combined responses. Individual US investors should not invest in offshore funds. It will have a very significant and negative impact on their personal tax situation. If you are...

See these paragraphs from my prior posts: Each state (with the exception of Wyoming) has created rules relating to Investment Adviser activities. Some of those state rules will take precedence over the federal rules. For example, in Texas and California (and many other states), if you have a...

Yes, it is a lot of work. But the work accomplishes several things. First and foremost, it protects your personal assets. By setting up the LLCs, you insulate yourself (unless you commit fraud or illegal acts). Second, by accepting payment for your services, depending on the number...