Trading a pool of funds

[dpiatek]

Is a company required to register as a Hedge Fund of Mutual Fund entity to trade a pool of funds? My situation is that I currently have a Advisor Account with Interactive Brokers with a few family and friends accounts. I'd like to make my task more simplistic by pooling the money into an Institutional account. However, I don't want to take the hit of the increased initial costs and legal work a Hedge Fund, or more so a Mutual Fund, setup would incur. So is it possible to just transfer over my current clients into the pooled account and use software like Trade Depot to handle the investor accounting?

 

[ktm]

Try searching for the topic. There are some crucial details in the answer to your question and many have posted substantive material on this issue in other threads.

 

[dpiatek]

Thanks KTM but I have already search high and low on these forums and the rest of the internet. Maybe I'm searching for the wrong topic. I've talked with the Insititutional sales rep at IB and he said it shouldn't be a problem just trading through my company without being registered as a hedge fund/mutual fund. Also the guy at Technicom said it should be alright as long as I have the investor level accounting back end. But with regulations I'm not so sure. I understand regulations are high on managed pooled funds. I currently trade through my LLC and am a RIA. Hopefully that should be enough. I'll have to see if my accountant can direct me to someone who has more expertise on the matter than I.