Does an Analyst at a Hedge Fund in California Need Series 7 and 65?

C

Cyrix

Does an analyst employed at a hedge fund in California need to take Series 7 and 65?

How about a trader at a prop firm in CA?

Thanks.
 
You only need a FINRA series exam if your employer is a registered Broker-dealer. Hedge funds are not typically BDs. Some prop firms are and some are not. The ones that are, typically require the SIE and 7, but some might require the 7 too.

Why do you ask?
 
Robert Morse said:
You only need a FINRA series exam if your employer is a registered Broker-dealer. Hedge funds are not typically BDs. Some prop firms are and some are not. The ones that are, typically require the SIE and 7, but some might require the 7 too.
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I don't understand.
Hedge fund traders trade clients' money. Doesn't it mean that they need to be registered as Registered Investment Advisors, which require Series 65?
Could you please clarify?
Thanks.
 
A hedge fund trader traders the money of the LP and does not trade the client's money which would imply the owner of the account is the client. Those are called separately managed account (SMA) when the client is the owner of the account.

Give me a call later this morning if you want.
 
Robert Morse said:
A hedge fund trader traders the money of the LP and does not trade the client's money which would imply the owner of the account is the client. Those are called separately managed account (SMA) when the client is the owner of the account.
More...

If the hedge fund (such as a CTA) trader trades futures, does he need the Series 3 exam?
Is it also not needed because's it's LP's money, like the other two exams you explained?

Thank you very much for your replies.
 
A CTA needs a series 3.
A hedge fund is a pooled asset not SMA. A CTA with a pooled Asset is either a CPO or an exempt CPO. A CPO will need a 3 and might need a 7 too as it might be considered the sale of a security.
A hedge fund that trades futures but is exempt, will likely not need a 3, only be an RIA.

You really need to look to a pro for some of this to get the best answer that takes into account your state laws + regulators.
 
Robert Morse said:
A CTA needs a series 3.
A hedge fund is a pooled asset not SMA. A CTA with a pooled Asset is either a CPO or an exempt CPO. A CPO will need a 3 and might need a 7 too as it might be considered the sale of a security.
A hedge fund that trades futures but is exempt, will likely not need a 3, only be an RIA.

You really need to look to a pro for some of this to get the best answer that takes into account your state laws + regulators.
More...

Thank you very much.
 
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