How do I start an investment fund?

[Cesil]

I want to start an investment fund whereby I trade the invested money on the FX spot market in exchange for a cut of the profits. I have been doing this successfully as a private individual for a while but want to take to the next level by increasing the amount of money involved, the easiest way is obviously by getting other peoples money involved... Any ideas or a point in the right direction?

[directmarketingadvice]

I think you have to be regulated by the FSA, so that might be the first thing to look into.

Steve

[Hogrill]

Might be worth a read

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=91260&highlight=%A315000

[Cesil]

Thanks Steve. Im aware that there will have to be regulatory compliance issues to take care of but I'm more interested in trying to find out more about the mechanics of what I need to do to set it up... not like a normal business i'm guessing otherwise every trader would be doing it!!

[Chris Ashdown]

Quite honestly if you do not know the answer yourself, you are not registered and have no hope of being registered and there for by law not able to trade in this manner

[Cesil]

Thats very useful, thanks. Prior to starting this thread I spoke to my account manager at the bank who is is my market marker. He is registered, runs managed funds & trades on behalf of the bank itself as well & he had no idea how to go about either so maybe I'm not so 'no hope' after all...

I know in the US there are ways in which such funds (private forex spot trades) can be setup so as not to require full regulatory supervision.

If anyone has any experiance of setting up something similar I would be interested to hear what you have to say.

[Cesil]

Ah, vindication from those that think they have half an idea about what they're talking about. Since the last post on this thread, I've since engaged a law firm that DOES know what they're talking about, have several investors banging down my door to get in on this at business, rather than fund, level, along with a long list of other people who want to invest once this is fully set up later in the year. This is now my full time job. Obviously I have f*ck all idea about what I'm doing, with my rolling 12 month ROI at 420%+ (increasing day by day) & all. The rest of you have fun!!

[Chris Ashdown]

with that sort of return maybe you should talk to the Royal bank of Scotland, as well as HBOS / Lloyds bank. They seem to need your help

[Robs]

You need to be qualified investment manager contact the Securities & Investment Institute for info or CFA Society of the UK. Also you'll need decent amount of capital to start as there are capital adequacy rules to adhere to under mifid rules

[kaddour]

Ah, vindication from those that think they have half an idea about what they're talking about. Since the last post on this thread, I've since engaged a law firm that DOES know what they're talking about, have several investors banging down my door to get in on this at business, rather than fund, level, along with a long list of other people who want to invest once this is fully set up later in the year. This is now my full time job. Obviously I have f*ck all idea about what I'm doing, with my rolling 12 month ROI at 420%+ (increasing day by day) & all. The rest of you have fun!!
Hi Cesil,
You seem happy with the quality this law firm. Could you please give the name/details of this firm so, others can use it?
regards and best of luck,
Kad

P.S. Although I am a regular on this fantastic forum, this is actually my very first post. Hope it goes well :)

[Cesil]

Depends where you want to operate whatever it is you're interested in. Mine will be registered & operated out of New Zealand (not the most tax efficient, but compliance wise is way easier for new entrants than the UK, especially at the moment). That being the case my law firm is based in Auckland so may not be much help to you.

Previous comments about helping banks etc... I suspect the people they were still trying to pay bonuses to would include a lot of FX traders who have actually made money...