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How do you set up your own investment fund for others to invest in?


I want to run and set up from scratch an investment fund and want to know how I can do this and which laws govern the setting up of such, for example does any such fund need regulating by the FSA etc?

Any help greatly appreciated.

There are many legal requirements. You must register or gent an exemption under the Investment Advisers Act of 1940. You would have to structure your company to be exempt from the Investment Company Act of 1940, and you would have to apply for a Regulation D exemption from the Securities Act of 1933. If you want to raise more than $1Million under Reg D, you will also need an audit. Additionally, you must register at with the state securities commission in every state where you offer securities (shares of your fund). If you have less than $25 Million and therefore are exempt from federal Investment Adviser registration, you probably have to register as an Investment Adviser in each state where you sell shares of your fund.

Disclaimer: This is not legal advice. Consult with a lawyer.

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