- August 12, 2018 at 7:03 pm #232460
Kamal kishor nag
We are a group of 15-20 people and 4 among us are well qualified and experienced in financial investments , so we actually want to form a cooperative society and our sole business is to generate wealth for the members of society only through investments in capital market(equity,debts,bonds,mutual funds etc).
So is it allowed to form a investment cooperative society??August 12, 2018 at 7:08 pm #232477
Dock David TreeceModerator
Thank you for your question. I’m not aware of an “investment cooperative” structure that’s available in the United. States. Under SEC regs, you may be able to organize as an investment club. However, that would require that follow certain rules when setting up your organization and investment decisions to be made according to certain democratic processes. Forming an investment club would also preclude you from charging fees for managing money.
Based on what you’ve outlined above – with only a few of you having experience and expertise in finance – may actually be an investment advisory firm rather than an investment club. Setting yourself up as an investment advisor would allow the four of you who have experience in the markets to make investment decisions and to charge management fees. However, this would also require you to register with the SEC – you would effectively become a type of financial advisor.
Depending on your vision, you might explore these two alternatives in greater detail and decide whether one might be right for you.
Hope this helps,
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