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Discussion Starter #1
My friend and I have been talking about this for a while. We're a perfect compliment for it, my building outperforming portfolios and drive for research and knowledge, and his ability as a salesman and people-person to be the frontman. I have the CSC, and he has IFIC and doing his CSC and PFP. I have an idea for a company name. The thing we don't know is the logistics behind it all. Probably have to get lawyers involved and contracts and all that? Where to put the money, Interactive Brokers? I see they have an advisor option. What about setting up registered accounts for clients?

No rush, we're both working right now and want to do it sometime in the future, maybe ease into it. I'm thinking of charging 1% annual fees, so we would have to be managing millions to make it worthwhile as a full time job anyways.
 

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Without relevant experience working for a money manager, this will be very difficult. Why not get a job in the field first? This will also allow you to make some client contacts. Managing someone else's money is very different from managing your own but good luck.
 

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I'm sure others who know more details can chime in, but I don't think your plan is very realistic. I could be wrong, but I don't think it's that easy to start an investment fund.

Just an idea, but you might be better off going to an established investment company and pitching your team to them. That way, they can provide the infrastructure you'll need (investment compliance, legal) and you two will run/sell the fund. You might have to prove you have some investors lined up already.
 

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Discussion Starter #5
Not really looking for advice, just wanted to see if anyone knew the logistics. Logistics, logistics, logistics! War, business, relationships.. it's all about logistics. I don't want to work under anyone or any company, him and I have done that already. I'm not ready to go all-in on this yet, but if and when I do I want to be prepared.

1. Register a business/corporation name
2. Open up the necessary bank/brokerage accounts
3. ???
4. Profit!
 

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Hmmm. Do people really not know this? OK. The licenses to manage OPM (other peoples' money) are all held by dealers in Canada. Thus, you need a dealer to sponsor your license, and you will need to do a compliance / conduct and practices course (and pass it) before you can obtain a license (held by a dealer), and then complete what is essentially a probationary period.

Now, there are lots of different ways to get a dealer to hold your license, depending (in part) on what kind of license you want to hold. And there are lots of different "models" for the relationship between the dealer and the advisor -- independent (and varying definitions of what that means), employee, MFDA, IIROC.

If you want to do discretionary money management that is another whole different ball game and layer of licensing and documented experience in the industry. Specifically, you need the CIM (Chartered Investment Manager) license.

None of these things have anything to do with the CFA, CFP or any of the multitude of other optional designations advisors can get. If you want to manage money on behalf of other people, you need a stock and bond license (which also allows you to trade in MFs), or a MF license (which restricts you to MFs), and you need a dealer to sponsor and "hold" your license, and you need to meet the dealer's internal requirements for compliance, conduct and practice. That is it.
 

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moneyGal-please-advise-me-i'm-planning-to-write-a-COMIC-BOOK-about-investing-i'll-make-a-million-bucks-then-the-globe-&-mail-will-air-a-hideous-defective-video-about-ME-i'll-look-like-a-weeping-joke-but-never-mind-cuz-i'll-be-making-a-million-bucks-the-whole-time-please-moneyGAL-do-you-think-i-should-INCORPORATE-thank-you-so-much
 

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moneyGal-please-advise-me-i'm-planning-to-write-a-COMIC-BOOK-about-investing-i'll-make-a-million-bucks-then-the-globe-&-mail-will-air-a-hideous-defective-video-about-ME-i'll-look-like-a-weeping-joke-but-never-mind-cuz-i'll-be-making-a-million-bucks-the-whole-time-please-moneyGAL-do-you-think-i-should-INCORPORATE-thank-you-so-much
Ugh. I hope this is not actually a comment about me. The Globe aired a video I shot (last March) last Monday - I looked like a zombie in it.:upset:
 

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I hope this is not actually a comment about me.
of course not. It was a reference to that shocking video featuring andrew hallam. The pixels kept breaking down. At one point a quarter of his face dissolved & wept into his jawbone. Hallam says nothing except he made a million bucks woo-hoo & the financial industry's licensed advisors are evil thieves.

so very sorry if the above was not clear. What i meant to make fun of was all these cmf forum kids with 1 or 2 years' experience in the current bull market who are suddenly jumping out of the woodwork, with no training or experience whatsoever in discretionary portfolio management; but now they'd like 1% for their thoughts. Argo is the 4th young person in the past few weeks to present himself.

(sigh) it's so difficult to bring the children up properly these days ...

ps i did see your video. You did great ! do not worry in the slightest.
 

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HP. Yes we are getting some pretty tedious posts from relative newcomers(not Argo) asking technical questions on matters that could be easily reseached by them other places. I must say there isn't much of interest for me in these type of questions or the responses that do pop up. MG has way more patience than I.
 

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argo is a surprise to me. He's not going to get any clients unless he goes in for the proper training, which is (probably deservedly) long-drawn-out, painstaking, challenging.

the strange fact in this development is that, with the right licenses & experience, argo could be a huge success.

but casually taking other people's money & tossing it into an account at interactive brokers *not.*
 

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But...getting an IIROC or IFIC course under your belt and signing up with IB *is* one way to do it. It isn't a naive question, I don't think; look at the range of suggestions provided in reponse: get a CFA, just set up a corporation and open an account, start an investment club, etc. Not that these are bad suggestions per se -- but none of those things will allow you to handle even one cent of another person's money.

I responded not because I have infinite wells of patience :)biggrin:) but because I was surprised at how misunderstood this is. What does it take to OPM? A license to do so. How do you get one of those licenses? You must be sponsored by a dealer and meet their rules and basic industry qualifications.
 

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MG I don't think the question of "how to do it " was naive but rather the apparent ease to be successful managing OPM implied in the OP. Furthermore if one was seriously considering this avenue, surely there are better and more reliable sources of how to get started. Not that you aren't a reliable source of course.
 

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But...getting an IIROC or IFIC course under your belt and signing up with IB *is* one way to do it. It isn't a naive question, I don't think; look at the range of suggestions provided in reponse: get a CFA, just set up a corporation and open an account, start an investment club, etc. Not that these are bad suggestions per se -- but none of those things will allow you to handle even one cent of another person's money.

I responded not because I have infinite wells of patience :)biggrin:) but because I was surprised at how misunderstood this is. .
......or because instead of saying "you gotta be kidding" the kind members actually offered alternatives that have some merit in his situation. ;-), ie majority of successful money managers who run their own shops have started as employees of established firms and worked their way up.
 

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OK, I answered in my typical "style" (I answered the question in front of me and that's it) and didn't venture outside that. Sometimes I think I should have been a compliance officer; I apparently think like one.
 

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Discussion Starter #19
But...getting an IIROC or IFIC course under your belt and signing up with IB *is* one way to do it.
This is my take-away from all these posts, thanks.

I must say, this thread is filled with what I perceive to be an annoying trait shared amongst Canadians. The tendency to be Debbie Downers and Finger Wagging Paternal Figures, "no-you-can't-do-that", etc. As a Canadian I do this sometimes as well. But the American in me is winning over in this case.. let's just cut through all the red tape and do this. A good plan today is better than an excellent plan tomorrow. If you succeed, great, if you fail you learn something from it.

Another avenue might be to forget other people's money, initially, and just be financed. I have great credit and am pre-approved for business loans and all that.
 

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I personally would not be comfortable to put my million dollars in any company having less than a billion and have some solid performance behind it.You may very well complete all the steps but to me that will be your biggest hurdle to get people trusting you with their money.
 
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