Investing without a license

M

matt-cable

Guest
Hi all,

Some pals and I have always wanted to work as investment bankers and would like to start our own personal hedge fund of sorts (a mutually managed brokerage account created through partner buy-in alone). None of us are licensed financial advisors, bankers, etc. however. 1) Could we form an LLP under these circumstances? 2) Would it be legal to market our venture to other friends (potential partners)? and 3) If these are all possible, which is the best state to file in?

Thanks!
-Matt
 
matt-cable said:
1) Could we form an LLP under these circumstances? 2) Would it be legal to market our venture to other friends (potential partners)? and 3) If these are all possible, which is the best state to file in?
Click to expand...

Be smart, disabuse yourself of any notions that might cause you to skirt the law or financial regulations.

You are heading into a very perilous jungle, stay out.
 
You and your pals are free to form an investment club, pool your money and invest in anything you want to.

But when you start getting ANYBODY else to "buy in" you would be in violation of federal security laws and could end up in prison.

Go to the SEC website and study up:

SEC.gov | Regulatory Actions
 
adjusterjack said:
You and your pals are free to form an investment club, pool your money and invest in anything you want to.

But when you start getting ANYBODY else to "buy in" you would be in violation of federal security laws and could end up in prison.

Go to the SEC website and study up:

SEC.gov | Regulatory Actions
Click to expand...
So we could not even invite other individuals into the club besides those we started with? Because any new person would 1) have the knowledge we were not licensed advisors and 2) be becoming an equity partner in a partnership. I thought those reasons made it okay buy I shall definitely look through the applicable SEC regs.
 

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