For your fund of up to 20 people, you're in an area that is filled with legal and regulatory issues. Some thoughts: Isnât there a way to avoid registration as an investment adviser? The answer to this question is complex and varies by state. The reason that it is a complex question is that you are dealing with four distinct areas of law: The Investment Company Act of 1940, the Investment Advisor Act of 1940, Regulation D under the Securities Act of 1933, and your stateâs laws in the area. Some states prevent you from operating a hedge fund unless you are registered as an RIA. How you set your fund up and how many investors you have determines whether you are able to meet one of the areas of exemption under the federal laws. See more information about the need to register as an Investment Adviser on this webpage:
Remember the key point that many states follow, is that you cannot advertise or put out your services to the public for hire. Michael B.
does anyone have any experience of starting their own broker/dealer or know anything about it or anyone who has ever tried, or know anywhere to get info... possibly starting one w/ just funds and annuities, etc.. just seris 6 stuff no 7 trades.... tia for any input