If you are exempt, then you don't need a disclosure doc. You just need the exemption statement. Besides not needing a disclosure doc, you don't need an "NAV" either. The important thing is to correctly calculate the percentage change each period.
No need - I just live in a small (15,000) town and lawyers within this subject are few and far between. So I thought I might talk with someone who gone down this road before. Thanks, Chris
Exemptions statement to whom - the NFA and CFTC or the participants? % change for the pool in general or for the individual participants? Thanks, Chris
The exemption statement as required by the NFA. It's talked about in the same publication as the one you must have read to determine that you are exempt from registration. And you'll have to have the correct % change for both the pool in general and the individual participants. For your track record you'll use the first and for individual account statements you'll use the second. They may or may not be the same depending on, for example, whether you use an account specific high water mark.
I have a sample Disclosure Agreement for you. Just shoot me a PM and I will forward to your address. I have some contacts for the setup process also. Good luck with the pool.
DblArrow, I agree with much of the information here. You definitely need to know how much you are going to have to pay to make this work for you. There are at least three critical factors: the Pool's performance, the performance allocation you will be taking, and the amount of profit you need to be able to earn in the first "lean" years to allow you to live. The cost to set up the pool is a big nut. Metooxx said $25-$50K. I'm sure that's accurate for the white shoe firms in Chicago. Our estimate for total set-up expenses (including the amounts payable to us and the other expenses you will probably incur) is $10-$12K. You will also have ongoing expenses. For a full year, I estimate those expenses to fall in the $20K area, but this is widely variable based on the amount of trading activity you do, whether you are doing your own day-to-day accounting, etc. If you have the time and interest, you can do your own accounting, and that will save you a lot of money. It becomes a question of how much time is available in a given day and whether you can manage the pool, attract investors, and still do all of the administrative work. Here's a link to a publication at the NFA that you may find very helpful: http://www.nfa.futures.org/compliance/publications/dd2001/DD2003.pdf See pages 41 through 45 of the pdf document--the QEP exemption is a very powerful exemption. Good luck in your search. I hope you are able to find a provider that will be a fantastic member of the "team" you are going to need to start your Pool!
Thanks for your info - I also found the above document and downloaded it. Appreciate your thoughts, Chris
DA, Exempt statements go to CFTC, NFA and participants. If you choose to set up an exempt pool, advertising to the general public is not allowed. The exemption allows you to only trade for participants like family, friends etc. No more than 15 participants in each pool or $200,000 initial capital max. If you desire to do more, a Series 3 , registration with NFA, disclosure docs., etc. are needed. Much Success,
I got mine put togeather for about 30k, pm me if you want the name of the firm, its in nyc, dont want to promote on here.