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IRA SMILOVITZ
Leonia, NJ
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| 06/26/2008 10:34 PM |
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Rich,
I'm not a lawyer, nor do I play one on tv. I view my role as one
of raising issues which I know have affected others (though not with the same
specifics as your situation) and leaving it to you to do your own due diligence
to assure yourself and your fellow investors that you aren't violating some
rule.
I wish you the best in your endeavors.
Ira Smilovitz
In a message dated 06/26/2008 10:23:19 P.M. Eastern Daylight Time,
clubhouse@stockcentral.com writes:
From the
The Clubhouse forum at StockCentral.com, tucanred writes:
Hi
Ira:
Thx for the
link. I’ll read it through. Yes, these laws you cited are
correct.
I will write up a
paper based on my research and legal analysis given the particular model I’m
looking at and get back to you for perhaps your input. I would be
sincerely indebted to you.
I see a correlative
relationship with FX and equities markets… my technical analysis works for
either/in concert with fundamentals – e.g. economic
reports.
The interesting index
chart is to take the Baltic Dry Index; DOW; and S&P – at 3years… and
you’ll see a clear picture of what is driving the global economy.
I got some good
feedback raising these concerns and the fact that some people are honestly
trying to wrap there mind around the concept.
For one thing, I
don’t work for a brokerage, and I’m not soliciting for business. I’m an
independently contracted account manager/trader for the Forex Spot
market. My contracts are specific about this and there is no
conflict of interest under these provisions. If I were “the” FXManager
in a Stock Club to solicit monies for a specific brokerage, then that could
raise concerns of conflict of interest. But, for example the Stock Club
was an LLC or Corporation, then it can be the decision of the that entity to
decide on the FXManager they wanted to use. But if by profession I am a
FXManager, but join a Stock Club, that would not be a conflict of interest or
in violation of SEC laws and/or CFTC et al; as it’s a personal choice and I am
not enducing the members of the Stock Club to exclusively participate with any
FX brokerage that I am contracted with. It’s a gray area… so it’s a
matter of clarifying the boundaries of the relationship in the LCC or
Corporation bylaws. At least that’s my sidewalk discussion on the
matter… but I’ll dig into this and find out.
You raised the right
caveats. Thx.
I greatly appreciate
this, and I’ll get back to you on my own interpretation/determination in
consideration of the legal jurisdictions.
Tough market
today. It’s not over. ABX surged +258 gain. My own equity
portfolio took a +208 gain today. DUK was the only negative… ACH is next
to fall… such an odd thing today… YEN took the lion share of market sentiment
with CHF following… but Nikkei is on the skids now… these correlations are
interesting…
Good luck. I
like your website and what you offer.
Best,
Rich
Kambak
Elk
Grove, California
From:
clubhouse@stockcentral.com [mailto:clubhouse@stockcentral.com]
Sent: Thursday, June 26, 2008 6:33
PM
To:
tucanred@surewest.net
Subject: [The Clubhouse]: Re: [The
Clubhouse]: Re: [The Clubhouse]: Forex/Equities Invesment Club ...
(17299e32-4da9-4490-890d-6f0373ebde0f)
Sure. Start here: http://www.sec.gov/investor/pubs/invclub.htm (Investment
Clubs and the SEC). What you're looking for are how the following three laws
may affect you: Securities Act of 1933, Investment Company Act of 1940, and
the Investment Advisers Act of 1940.
In a message dated
06/26/2008 2:16:59 P.M. Eastern Daylight Time, clubhouse@stockcentral.com
writes:
From
the The Clubhouse forum at StockCentral.com, tucanred writes:
Do you have SEC
citations? Thx. Rich
From:
clubhouse@stockcentral.com [mailto:clubhouse@stockcentral.com]
Sent: Thursday, June 26, 2008 4:30
PM
To:
tucanred@surewest.net
Subject: [The Clubhouse]: Re: [The
Clubhouse]: Forex/Equities Invesment Club (5dd0b530-9b37-4efd-...
(bd7fb8d8-0caf-443a-9b87-38dacdb30074)
I see several
major problems with what you propose. First, forex trades are not really
suitable for an investment club environment because you can't get the
decision-making input from your members quickly enough to take advantage of
market movements. The second, and probably more significant, problem is that
the compliance rules of your broker/dealer may prohibit your membership in a
club or impose strict rules on what you can and cannot invest in and when
you can buy and sell. Finally, if your intention is to "manage" the club's
investment portfolio, then you may have additional SEC/FINRA
requirements.
In a message dated
06/26/2008 11:12:15 A.M. Eastern Daylight Time, clubhouse@stockcentral.com
writes:
From the The
Clubhouse forum at StockCentral.com, Richard Kambak writes:
Hi...
I am considering
starting a Forex/Equities Investment Club. I am a FX account manager
and see that there needs to be new paradigm of combining FX/Equities
because cross border markets are being driven by foreign
currency/commodities more and more.
Any
thoughts? Insights?
Appreciated your
feedback - if constructive.
Sincerely,
Rich
Kambak
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