Question about running a pooled managed account

curiousgeorge

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Hi guys, I am not a trader but I know a good trader, and together we want to set up a managed account. He would trade it and I would manage the pool. So it would be a pool of different people coming together to have their funds traded.

This is mainly a question about legals. I am Australian, the trader is in Brazil. The investors are from all over but none from Australia.

As it is a large pool (and for technical reasons we need one large account and not lots of mini accounts) the best way seems to be to open one large account - but only one person can fund the account. So a solution is to use an intermediary account where everyone sends the funds to, and then I can fund the broker account from there. The intermediary account will be most likely be in my name, and possibly in Australia.

Now as I said I am not doing any trading, but I am managing the pool of funds, which means paying profits out, and I also will take a small percentage of profits myself, as payment for managing the pool.

Clients would each sign an LPOA and agreement with me, and I would also sign an agreement with the trader to trade "my" account (ie. the pool).

Is this all legal? Is it outside ASIC's jurisdiction? I am paying tax on my profits etc. No investors are from Australia, and the trader is outside Australia. I intend to speak to legal people of course, just wondering if anyone has done this before and what is the best way. Thanks all!
 
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