Yes, Aaron, you're correct!!! I just called the NFA, and the customer service represtative affirmed that for SSF trading, SEC registration is NOT required; it does however require some "online training" (sounds pretty benign).
Hi Aaron, Great post. Provided exactly the information I was looking for, but let's try a concrete example here. AceTrader runs SuperFund. SuperFund has AceTrader's money $100k Investor1's money $200k AceTraders' comp is 2%/20% End of the year, fund has made 151k profit; paid $1000 in data fees. Let's simplify by using year end figures Fund Assets = 300k + 151k = $451k - $1k = $450k AceTrader's portion A) management fees = 2% of $450k B) perf. fees = 20% of $100k + 100% of 50K A is "earned income" with FICA etc. tax payable. B is 60/40. Is the math right? Anyone? Thanks!