????? I think you're information is wrong. It's not illegal to be compensated. Better double-check your facts. Please let us know where you've heard this. Again, it's right there in the IB Friends and Family setup. You're saying that this is illegal? ...
got this from NFA. March 29, 2010 NFA announces webinar to help CPOs meet their new quarterly reporting requirements NFA will hold a free webinar on Tuesday, April 13 at 12:00 p.m. Eastern Time to help its CPO Members understand their new quarterly reporting requirements. NFA Compliance Rule 2-46: CPO Quarterly Reporting Requirements, which will become effective on March 31, 2010, requires each CPO Member to report on a quarterly basis to NFA specific information on certain pools that it operates within 45 days after the end of each reporting period. Using a new web-based system that NFA designed specifically for this rule, the CPO must enter the following information: (a) the identity of the pool's administrator, carry broker(s), trading manager(s) and custodian(s); (b) a statement of changes in net asset value for the quarterly reporting period; (c) monthly performance for the three months comprising the quarterly reporting period; and (d) a schedule of investments identifying any investment that exceeds 10% of the pool's net asset value at the end of the quarterly reporting period. The first quarterly report will be due by May 17, 2010 for the quarter ended March 31, 2010 and must be filed electronically using NFA's EasyFile System. The April 13th webinar will give an overview of the new requirements and provide a demonstration of how to file the new reports electronically with NFA. Click here to register for the webinar. Questions concerning the reporting requirements should be directed to Tracey Hunt, Senior Manager, Compliance (thunt@nfa.futures.org or 312-781-1284) or Mary McHenry, Senior Manager, Compliance (mmchenry@nfa.futures.org or 312-781-1420). http://video.webcasts.com/events/pmny001/viewer/index.jsp?eventid=34099
Let's say, along with my futures trading (which is systematic), I also trade equities/options, but discretionary. When does it need to be to have to be a CTA or registered with the NFA? Is it a % of assets dedicated to futures vs. equities? Also, if one only trades in currencies, spot fx, I think I read they do not have to register at all...that correct?
Aaron you have $6.5 M under management but only $1.6 in IEA-Plus fund. Does it mean the meaning <$5M managed as individial managemed futures accounts?
Yes, it depends on amount of futures trading... I want to say 10% or more of assets in futures, then you must register accordingly. In my case, I avoid equities entirely. This means I can avoid registration with the SEC, investment company act, and RIA overhead.
What does you guys suggest for the structure of the management company for a CTA? I already have an LP, which I am 99% of....I guess I could use that. I also see many use LLC or Ltd. Just looking for advantages/disadvantages and most common used.
I used a LLC. Very simple, straight-forward approach. I don't really know about advantages of LLC vs LP in that context... probably pretty similar.
I agree. The fact I already have an LP will save costs setting up a new company, and my LP has been in business for 4 years as well.
Back up, I just googled this... if you go the LP route, it suggests as a general partner (or a limited partner involved in management), you don't, in fact, have limited liability. Can't imagine that's a good idea.
I have a C-corp as my GP of my LP. I own both, so I am the only one involved with the LP....but that structure opens me up to liability, eh?