ASSENT withholding initial contrubution for a year

Discussion in 'Prop Firms' started by AutomatedTRader, Jul 18, 2003.

  1. BE aware!!

    I tried to withdraw my money from Assent.....and they told me that i can only withdraw it a year from the date i put it in.

    Apparentlly it was in the fine print the contract.

    My GSP tells me that its an SEC rule.

    I highly doubt that.

    Anyone have ideas what to do about this?
  2. dumb rule, but if it's the contract, you have no one else to blame but yourself for signing it. you can't treat prop firms like retail brokerages. it's not as easy to pull money out. they're not your ordinary etrade or chase bank since a lot of them are structured as partnerships and more complex business entities.

  3. It is based upon the SEC's net cap rule 15 3 c1.
  4. Can you explain this rule?

  5. I'm not an attorney or financial expert and special courses
    and licenses are given on the rather technical subject of net
    capital. That being said, since I also had some problems with
    Assent's interpretation of this rule, it goes something like this:
    your initial capital is considered "good capital" which counts
    under the firms net capital requirement. Some would argue
    that the SEC has no prohibition against you removing your
    capital under this rule as long as the firm does a net capital
    recalculation. Assent, a firm that I believe is high-caliber firm,
    doesn't want to make the net capital recalculation citing
    difficulties for financial management and that it may raise
    potential regulatory problems.
  6. Has nothing to do with NET CAP and if they mingled them they would be shut down in a heart beat.....This is all about circumventing the PDT rules.....For unlicensed traders who want to get leverage, they technically " buy" into a limited partnership for X amount of avoid the scrutiny of the SEC these 'partnerships" or hedge fund as we know them, have to spell out specifically the amount of investment, the duration of the 'fund or partnership" and how the proceeds are distributed..Most legitimate LLC's ( like for oil and Gas,real estate ect..) have a minimum investment size and lock up periods...all assent is doing is operating this LLC like a REAL partnership. Just remember though and Ive said this 100 time on this board before....your money is not really guaranteed and if the LLC does fold you can only make an appeal for your $$ to the LLC NOT SIPC or the NASD....adn if the General Partner of the fund were to decide tomorrow to 'close down the fund'....he only distributes each members % of ownership....example: You put in are one of 50 guys who each put up 20k.=1,000,000...your % of ownership is 2%....let's assume you have all your profits paid out each month, and start each month with you 20k....if a couple other trades are not as successful and lose 10k each...over the year ( very possible)...You can actually have a fund or LLC that only has 700k in actual equity...meaning if it was dissolved would get 2% of 700k back....which would be a check for 14k even though you never lost $$
  7. The Assent financial manager I spoke with cited the net cap
    rule 15 c 3 -1 as a rationale for their position.
  8. On page 9 of the contract under Section 5.07 Distributions
    "The Board of Managers shall not make any distributions of
    profits or returns of capital to any member that would violate
    the Uniform Net Capital Rule of the Securities and Exchange
    Commission or any other applicable regulation, rule or statute
    applicable to the Company or its business."
  9. gimp570


    So if you have been with Assent for over a year and you then want your money back, how long can they hold it, is there a time limit in which they have to give your money back

  10. WOW......So, when you put up your $$ and you sign this , they are putting you $$ into a ASSENT LLC....and you are helping float their Net cap???? I find this incredibly hard to believe but if you are quoting it, they must be doing

    ....but I beleive the Net Cap would only be considered in the Reserve computation depending on the amoutn of debit and or credit balances
    #10     Jul 21, 2003