Shocking, whether he's genuine or not. And some may have fallen for it. I hope he's been shot down in flames by other members
The comments from LinkedIn members are pretty much on the lines of:
"You are a fund manager and you are asking for money with a demo account track record?"
And as
@Kaitsu 's post highlights, a typo like that is comedy gold-dust!
I have looked into trading other people's money... you CAN trade your family's or friends' money, for example,
by common agreement, because you are not ADVERTISING your services, something which requires you to
be FCA (in the UK, or FINRA in the US) regulated; this is usually called an unregulated collective investment scheme (UCIS)
https://www.fca.org.uk/consumers/unregulated-collective-investment-schemes which actually also includes funds because
one of the exceptions to advertising is that the person(s) running the UCIS can approach people of high-net worth (usually
defined as worth more than 200k, if I remember correctly), which means that they are investors who can shoulder losses
without losing their home, essentially not needing the state's protection as the ordinary member of the public.
If you want to be an 'authorised person' under the FCA regulation, your collective investment scheme (CIS) cannot be
unregulated and it needs to fit one of the following categories:
https://www.fca.org.uk/firms/authorised-recognised-fundsYou CAN set up a company with you as the sole director/manager but you have to be a separate entity from that
company, as usually is the case with, for example, limited companies and any other business, in order to protect
the investor and the manager should there be bankruptcy/insolvency - the manager/director will not be personally
liable for the losses incurred by the clients as the FCA will step in to compensate clients against the company going bust.
These are basic things that I learnt from a couple of calls/e-mails to the FCA, which means that anyone trying a fast one
like the chap there on LinkedIn does not even intend to get his house in order and do things legally, otherwise he would
have deleted that post in his brain a million times, let alone typing a single word of it and making it public!!
In this business, reputation is everything, so if you have to be credible you will work hard at it... And there is no reason
why somebody with zero pro experience cannot set up their fund, but surely they have to have a credible track record
(not a demo account) and have done their legal homework.
PipMe
