What do I have to do to start a hedge fund and invest money from public investors legally? Do I form an LP and do I need any licenses?
2 Answers from Attorneys
Yes, you would need (among others) licenses from the Securities and Exchange Commission (SEC) and from the Financial Industry Regulatory Authority (FINRA). Obtaining licenses to operate any kind of investment fund requires significant educational and experience credentials. The average guy off the street who has to ask such a question is a long, long way from being qualified to take the licensing examination. You might more easily study to practice law or medicine than to qualify for the licensing to start and run a hedge fund.
Mr. Whipple is correct. The fact that you even need to ask if you need licenses pretty clearly states that you could never pass the exams to get all the licenses you would need. You can't even WORK for a hedge fund in any capacity much above receptionist or mail clerk without passing significant licensing exams.
Related Questions & Answers
I have an old convertible debenture bond from The United Properties of California,... Asked 1/06/13, 5:34 pm in United States California Investment Law
If I bought a jeep and with my friend helping me do repairs and he paid for some... Asked 12/11/12, 10:58 pm in United States California Investment Law
After my husband dies, will his investments legally pass to me? HE HAS NOT NAMED... Asked 10/24/12, 12:22 pm in United States California Investment Law
My ex wife recently passed away. I was contacted by mail by our credit union who... Asked 8/07/12, 9:30 pm in United States California Investment Law
If UPS certified mail that holds investment checks sent by a foreign government in... Asked 7/06/12, 11:48 pm in United States California Investment Law