investment funds?

Question

Hello! I am interested in investment funds. If i want to open an investment funds (Futures investment funds), which papers are required? In my country this business is only developing that's why i am lack of information. Tell me pls, if i want to attract foreign investment do i need any License for investment attraction? And do i need any License for maney management? Are there any differences if i am a private individual or juridical person.Excuse me if my financial language isn't very correct.

Answer 1

You will need to contact legal counsel in your country. If you wish to sell these funds to United States citizens outside your country or by advertising in such a way that it would be obviously available to Americans, such as publishing an advertisement in the United States, then you must comply with the Investment Company Act of 1940 and the Securities Acts of 1932 and 1933. You will have to register with the Security and Exchange Commission as an Investment Advisor, the company will have to register as an Investment Company and you may have to join the National Association of Securities Dealers as a dealer in your own securities and register both with them, the SEC and potentially with one state in the Union's state Securities Commission.

In some cases you may also have to register yourself with the Commodities and Futures Trading Commission.

Your country of origin is critical in this question. You really need legal advice from your home country. You will need a translator as well, your English is understandable but will need to be flawless if you wish to file legal documents in the United States. It is very expensive to try and attract money from US citizens. I would set aside $100,000 per year just to cover the legal filings, trustee's fees and audit fees. That is every year, forever. This has nothing to do with being a foreigner, in fact it would likely cost you less than an American doing the same thing. Although any savings would likely be eaten up in all the additional travel.

There are too many options you could choose to give you a very specific answer. My suggestion is start with your own country's legal counsel. If you can pass the requirements for that, then you are on your way. Both the EU and the United States have long histories of fraudulant activity by people purporting to be willing to invest other peoples money. Both make it difficult to do so. I, for example, when I was registered as a broker, had to have my finger prints taken and investigated by the FBI as a background check just to be hired.