Is it legal?

Quote from brownsfan019:

If he wants to play in the US, then you will play by the rules of the US.

Seems simple enough to understand.

If he does not want the US based clients, then this discussion is meaningless. He obviously WANTS US based clients, so register. It's not hard or anything.

Again, if the potential is 'huge' for US based clients, then registering is the smart thing to do.
More...

As already stated above, in my reply to the OP, for 15 or fewer US clients he does not need to register with the NFA. That's the law. He is not "skirting" any law... he is in full compliance with it at this early stage.

Beyond 15 - should he ever get to that point - he'll need to make a choice. Until then, he'd be nuts to volunteer.

Yes, seems simple enough to understand.
 
You can't advertise a fund in the United States without registration.

You cannot advertise funds management without registration.

Based upon your webpage, what you need to do is to set up a hedge fund and qualify your prospects before you can forward information about your "fund".

Google the net. There is a plethora about hedges and registration and the legal way to go about doing it. Based upon your location, you may be targeting a certain demographic which would be successful thru a word of mouth/referral program.

If you have a track record, get it certified by independent (and since you want to do business in US, a US based) accountant.

Also, a 30% fund performance fee, no matter how you break it down, is high for someone without a track record.

However I get the feeling you are just trying to do it the easy way without the necessary work to do it right.
 
Concerning the 15 client rule, that applies to CTA type accounts in which the unlicensed CTA can have or operate a commodity pool of up to 15 clients and less than 200k under management.

Since he is talking about forex, that rule does not apply since:

a.) it is not a commodity pool by definition

b.) recent regulations passed by the SEC for hedge fund regulation were struck down last June (2006) so the regulation of 15 clients and 25MM or less under mangement to avoid registration is no longer valid. (if trading spot forex - still have to register as a commodity pool operator if he intends to trade and fx futures)
 
In fact, the rule has nothing to do with (as in goes far beyond) commodity pools only, and there is no AUM limit:

http://www.nfa.futures.org/registration/cta.asp

For the purposes of this rule, OTC cash forex is treated exactly the same as futures contracts.

The SEC (and its hedge fund regulations) has no jurisdiction or oversight with respect to OTC cash forex, either. 15 clients / 25MM reference from the Investment Advisers Act is irrelevant here.
 
Hard to believe somebody would even get into finanical managment without knowing the rules and even harder to believe they would come on this forum looking for advice. I think ill pass on this fund.
 
You must log in or register to reply here.
Back
Top