Starting my own funds management firm

[Spanning Tree]

I have always been interested in investing and I am curious to know if anyone here knows what the steps are in starting your own funds management firm. Do you have to register with ASIC? What else do you need? Should you have a lawyer to help you?

 

[prawn_86]

I've been interested too actually, just from a curiosity perspective.

These are the steps i know you would have to do (in no particular order):

Create a company
Gain AFSL (Australian Financial Services Licence)
Register with ASIC (perhaps part of the AFSL)
Attract investors

Its a bigger job that one might think, particularly the creating a co part, as you would need a specific charter etc and be bound by varying acts. Definitely lawyer territory IMO.

 

[Deepmarine]

Retail or wholesale investors?

If you're going to run a MIS (Managed Investment Scheme) then you're going to need to have an RE (responsible entity) plus compliance committee with majority of independent members, compliance plans, etc.

It is a fair bit of $$ in legals to set up the above properly, or there are ways to outsource certain aspects of the above.

 

[Trembling Hand]

If you could raise the 20 - 50 mil that would make it worth while to "manage" funds you wouldn't have to ask this question on a stock forum.

If you think you are good enough to trade OPM set up one company and a trust. Hold investor funds in the trust, manage/charge the trust with the company.

IF you think you are good enough to trade OPM of course you have min 3 years positive track record to show investors.

 

[ghotib]

How about find better advisers than posters to public forums. Not to say that we don't know everything you'll ever need to know, but we don't tell nuttin' for nuttin'. Or at least not to startup businesses.

Cheers,

Ghoti

 

[nizar]

If you could raise the 20 - 50 mil that would make it worth while to "manage" funds you wouldn't have to ask this question on a stock forum.

If you think you are good enough to trade OPM set up one company and a trust. Hold investor funds in the trust, manage/charge the trust with the company.

IF you think you are good enough to trade OPM of course you have min 3 years positive track record to show investors.

I dont know about $20-50mil it can be done with $10ish.
BUT that said, you would need to have a track record of performance (I would say 5 years) that has been audited by a reputable company eg. big 4 accounting firm.

 

[surfingman]

Gain work with a startup Funds Management Company if you have what it takes, take their business model and build your own.....

What the hell, if you are good enough take their clients too!!!!

 

[Knobby22]

Gain work with a startup Funds Management Company if you have what it takes, take their business model and build your own.....

What the hell, if you are good enough take their clients too!!!!

Shouldn't be impossible.
Look at Bernie Madoff

 

[Julia]

If we assume you can sort out the administrative/regulatory stuff, what would you offer investors that would persuade them to invest with you?