How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Albert Marmero Your Own Question
Albert Marmero
Albert Marmero,
Category: Business Law
Satisfied Customers: 193
Experience:  Partner at Long, Marmero, & Associates, LLP
93452170
Type Your Business Law Question Here...
Albert Marmero is online now
A new question is answered every 9 seconds

I understand that trading and investing other people’s money

Customer Question

I understand that trading and investing other people’s money is very limited by the law,
My question is, if for each customer / investor I will open a new entity and partner it up with my entity,
So in other words the customer / investor has his own entity for his money, and we will only link the trading accounts, is that a good way to do it?
Submitted: 7 months ago.
Category: Business Law
Expert:  Albert Marmero replied 7 months ago.

My advice would be that creating separate entities for each client would not be the best approach, and is likely not permitted by the SEC. Keep in mind, there is a cost to registering, creating, and maintaining entities so costs will build-up if you do this for each client. And since these entities will deal in trading and investing, these entities would each also need to be approved by, and regulated by, the SEC. Not to mention, each entity would then need to carry the insurance required for this field.

In theory, the idea of separate entities is typically wise, so as to insulate risk, but I think in this specific example, it will not work as it would be an administrative and financial nightmare.

This is likely not the answer you hoped for but I am obligated to give you my professional guidance, so I hope this is helpful. Please provide a rating so I receive credit for promptly responding to you. After rating, feel free to ask follow-up questions. Thanks!