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e&o/d&o has been killer for me i wont start trading OPM without appropriate indemnity and I don't have enough capital-commitments to cover these premiums. low premium policies ($2-$3k) are written for RIA's managing separate accounts, and won't cover you in a fund structure. Fund...

so, how are you guys doing on getting insurance? e&o/d&o seems to be the killer, so your business structure is ultimately going to be shaped by the level of premiums you can afford.

gmst said "In US also, you can't charge anything from your investors unless you have registered as an RIA. I am sure this applies at least for CA." US RIA registration is simple and cheap, and the exam is easy. RIA registration is only necessary if you intend to hold yourself out to the...

Take the right b-school classes. You'll find some covering finance or something taught by a failed fund-manager etc, and all your classmates will be very passionate about either investing or trading.

You can't take compensation for this in the UK without FSA authorization. Directly, or indirectly. Sorry. In the UK, there is a barrier for entry into the HF world. You will need enough AUM and your own capital reserves for the FSA to give your business plan a thumbs up. There is no...

Most tax planning customers want non-PAL ordinary losses. That has real economic value for taxpayers. An ETF that loses money will generate capital losses, which are generally worthless. That said, a strategy to lose money is no easier to execute that a strategy to make money. I imagine it...

If the cost of money movement operations take a bigger toll on your account than execution+clearing expenses, look at Vanguard Brokerage Services with its free domestic wire distributions.

I disclose all drug and alcohol use on my ADV part 2B

Your article quotes $750/month. You should not have any difficulty finding an admin @ $9k/year + $1k start-up. Your friend needs to figure out what services he really needs, and really is willing to pay for; and to forgo extraneous services that jack up the cost. Which of these services does he...

I work for a BD+RIA so I am governed by different rules that I believe have the same practical effect upon us. The temptation to trade OPM has grown since I worked my way up from receptionist to #2, but it has not gone away. However, #1 has been clever enough to keep my disincentives (ie...

Assuming all capital accounts are positive, all items of income retain their character when allocated to the partners. To answer your question with respect a general partner with a profit interest in a partnership whose only income is IRC1256 income. The general partners share of allocable...

We set up collective investments as partnerships and LLCs - observing the de rigueur formalities of pooled investment vehicles, and securities laws with respect to the offering of interests in the fund. Investment Clubs accounts are like general partnerships in many ways. Investment Club groups...

I am a broker-dealer clerk. When we are notified that you have died, we freeze your accounts. All open orders are cancelled. We will not take any new orders or money movement instructions until your estate's executor contacts us with proper documentation. What does NOT happen: we do NOT...

My previous post is incorrect; if he had transfered assets from his 401k to his IRA, and can adequately trace/document the property, it remains exempt in bankruptcy.

Hypothetical way to get your IRA to $100m: The firm he founded (or some firm he worked at) may have issued corporate stock or stock options to employees through their retirement plans. At the time of issue the stock would have had negligible value to reflect the speculative nature of equity in a...

Pimco's new BD will only custody their mutual funds. Pimco's SMA program actually uses SEI as their custodian.