Can I run money on the u.s. for foreign investors without ...

[Girija]

I thought he was asking whether he can run a fund without running a fund.

You can invest your own money any way you can, there's no problem...

The problem starts when you invest other people's money on their own behalf without having a license. I can't think of a country that's allowed.

Family office is a loop hole for rich and does not need a license (type 9).

 

[Nobert]

Thought about it. Got no license yet know what i do.

The way to overcome it (until one get's permission/licenses) is to strike a legal agreement with ,,investor/client" with a help of a lawyer, as if you're borrowing those monies for 24 months etc.

Shady part comes when you have to pay out profits.

Noneless you pay all of the capital gain taxes except for those that involves running a bis.

The most limiting episode : one has tu finish 4 years studies in finance or have at least a year of exp in finance related firm to be allowed to take the exam.

 

[traderjo]

So, I could offer my portfolio/pool say to Australian investors, but the portfolio stays in the US, as do I, and no US RIA/SEC registration/ licensing required?

That will require ASIC AFSL if not you risk jail time

 

[dcwriter2]

What is that money laundering prevention paperwork?

 

[traderjo]

What is that money laundering prevention paperwork?

Are you asking about AFSL? it is not just about money laundering it is a proper licensing regime to manage other peoples money or even to give trading advice ...or even to sell "trading Guru " type services!

 

[dcwriter2]

Never heard of it. Odd.

 

[traderjo]

Never heard of it. Odd.

Never heard of it. Odd. OF WHAT?
ASIC? AFSL? What is your point?

 

[billv]

Having to license up?

Without a license your options are limited.

If it was me I would probably form an LLC with my investors and the LLC would be trading its own funds.
Another way perhaps could be through the creation of a unit trust (Mutual fund) and again, the trust would be trading its own money.

I'm suspecting that the tax implications would differ depending on what structure is chosen and in which state you register.

I believe that in the case of the LLC, you will pay company tax rates , but in the case of the unit trust, the tax rate would vary depending on Investor's income.

Therefore, a unit trust could be a better option for some people.
In either case, the problem would be to find investors who will trust you.

 

[dcwriter2]

Was thinking separately managed accounts through IB. Pooling seems like a hassle.

 

[billv]

Was thinking separately managed accounts through IB

Yes that's probably the quickest and easiest to setup but you'll run the risk of being dobbed in.
Do you want to live in fear of being fined or sent to jail?
Its not worth it.

Pooling seems like a hassle

It is a hassle and there will be some costs involved so it might only suit bigger clients.