# What to do to get licensed to trade (lose) people's money



## Stormin_Norman (25 June 2009)

to trade currencies on behalf of other people (or take their money into a fund to trade) what licenses, regulations do you need to have?


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## prawn_86 (26 June 2009)

Essentially if your starting a fund you need:

AFSL
Asic approval
Responsible entity
Proper auditors

Probably a few other things also


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## dasmith1973 (26 June 2009)

Hi Storman..

ASIC licencing is the big one & if you are a fund you need responsible managers etc which cost a lot.  I responded to a another post somewhere here recently with comments from a friend who set a similar fund up this year, if you have cash or a backer its ok but it takes a fair no of $ to start (but who cares if you have a few $m being invested right!).....

see pm..

Chrs, Dave


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## lasty (26 June 2009)

Stormin_Norman said:


> to trade currencies on behalf of other people (or take their money into a fund to trade) what licenses, regulations do you need to have?





There are other ways to trade peoples money without going to the extreme expense of setting up a fund, which requires PDS's,administration, that could cost u $100k to set up.

I wont go into it on here in detail but you could get a license from someone who has an AFSL.


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## MS+Tradesim (26 June 2009)

Stormin, you might be better off getting a position at a prop shop. You get to trade more money but you won't have the hassles of dealing with whiners...*coff*...oops, I meant investors. You also won't have all the regulatory hassle and paperwork.


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## CFD (28 June 2009)

I assumed Norman was inquiring into the competency of others rather than looking to bring his own in to question.


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## Stormin_Norman (28 June 2009)

no was talking about myself.

i have a couple of hundred k's under management via companies (ie some shareholders contribute money capital, others intellectual IP).

however some rather large(r) potential investors would rather see a license then participate in a convoluted company structure.

i had thought it was a rather complicated process to obtain said license; and was throwing it out there to see if anyone had any general knowledge or personal experiences before i ventured into the regulatory minefield.


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## Naked shorts (28 June 2009)

lol at whoever changed the threads name


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## Stormin_Norman (28 June 2009)

Naked shorts said:


> lol at whoever changed the threads name




it got changed??


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## Naked shorts (29 June 2009)

Didnt someone add the "(lose)" part to it?  I dont remember it being there when i first read the thread.


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## Stormin_Norman (29 June 2009)

Naked shorts said:


> Didnt someone add the "(lose)" part to it?  I dont remember it being there when i first read the thread.




no, i put that in the original title. my gallows humour 

is most of the expense in getting the legals done for the PDS?

someone was talking about managers...so im not good enough?

seems like such a nightmare.


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## lasty (29 June 2009)

Stormin_Norman said:


> no, i put that in the original title. my gallows humour
> 
> is most of the expense in getting the legals done for the PDS?
> 
> ...




The first thing is the AFSL for asset managment.. ASIC dont hand these out willy nilly.. harder to get than a "normal" AFSL.
You will need loads of compliance for starters


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## white_goodman (29 June 2009)

Stormin_Norman said:


> no, i put that in the original title. my gallows humour
> 
> is most of the expense in getting the legals done for the PDS?
> 
> ...




maby you need 'managers' to stop another leeson/madoff scenario


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## Stormin_Norman (29 June 2009)

white_goodman said:


> maby you need 'managers' to stop another leeson/madoff scenario





clearly it worked in those situations well 

reading, and getting confused by the asic forms atm.

makes setting up in the cayman islands much more appealing...


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