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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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What's the best process to start group of people looking to

Customer Question

What's the best process to start for a group of people looking to start an investment group centered on investing money for others?
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

Hi,

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This is a highy regulated area, both by the states and by SEC at the federal level.

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For AUM (Assets Under Management) of less than $100,000,000 (including no assets under managemnt but providing investment advice for a compensation - be it newsletters, specicific individual/entity advice or otherwise) you will be regulated by your states department/division of securities.

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State regulated regulated advisers, however, must still REGISTER through IARD (FINRA's Investment Advisor's Registration Depository).

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One of the fundamental pieces of this is developing your firm's "Form ADV part II," called the Firm Brochure.

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This is where disclose to the pubic your pricing, services, invesment philosophy, potential conflicgs of interest, etc... It it THIS document that wil be reviewed (usually in an iterrative - back and forth - fashion) until the state has approved the firm's registration.

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Here's the ADV part 2 ... a good place to start.

https://www.sec.gov/about/forms/formadv-part2.pdf

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Let me know what questions you have from here...

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Lane

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