I know I would need to consult s securities attorney and i would. What is the legality of someone handing me finds and I trade. Or, like a prop firm, they setup an account and I execute the trades. I believe there is a small limit on how many investors you can trade for without being licensed or employed by a FNRA brokerage. I am in USA In California. I believe it varies from state that stAte.
The investor can set up an account for them that they own or their entity. The investor can provide you a POA. So far so good. Now, as a California resident with a place of business in California, to get paid a fee....You are subject to California State Securities laws to determine if you must register as an RIA in your state. http://www.dbo.ca.gov/Licensees/Broker-Dealer_and_SEC_Investment_Advisers/ http://www.dbo.ca.gov/Licensees/Broker-Dealer_and_SEC_Investment_Advisers/Did_You_Know.asp Investment Adviser: Investment adviser is defined in Code Section 25009.5 as any person who, for compensation, engages in the business of advising others, either directly or indirectly through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing or selling securities, or who, for compensation and as a part of a regular business, publishes analyses or reports concerning securities. (This is not a complete definition. See Section 25009.5). If you are unable to make a determination as to whether you need to be Licensed as an investment adviser based upon the definition found in Section 25009.5, you will need to consult private legal counsel. The Commissioner cannot provide legal advice concerning your need to be Licensed as an investment adviser. You should call them. I'm not aware of any exemption in CA.
Here’s a review of the CA rules http://www.dbo.ca.gov/Licensees/Broker-Dealer_and_SEC_Investment_Advisers/State_IA.asp Looks like there’s only a de minimus exception (6 clients) for people registered in their states.
You have to look at the definition of client. I believe in some states a LLC of 100 members equates to only one client.