It is not easy to build a fund management company.
For what we can see, only reputed banks or financial institutes are allowed to set up ones.
It is to protect the citizen.
I don't see any chance they will approve a small FMC, but you can always trade using existing investment bank.

Option or alternative ;

One may set up new investment comp or partnership from Singpola, indon, Thai, pilipin or brunei or papua new guinea. After run abt 18 mths from host country and since current malaysia gov treating foreign FMC with red carpet then it might be diff story....

Not a suggestion okay. Just wild tot.

there was once in V36 or V35 i think me and david_brent had a vision of a future LYN wealth fund that could be set up to bankroll the stock market.

partnership not good idea, anything goes wrong, partners can be sued till bankrupt!
sdn bhd, only the company kena bankrupt...izit?

what if 50% of capital goes into equities market
& balance 10% pay for some stock market subscription newsletter & our broadband fees
another 40% goes into fixed deposit

so can we be consider running like normal trading company
or we stil be consider fund managament co?

coz there wil be no management fees
every year, just divide the capital & loss amongst all shareholders
does this still need sc & bnm approval too?

This post has been edited by sulifeisgreat: Oct 26 2009, 09:44 AM

In General...

The rule of thumb if any one whether as an Entity or Person wants to carry out a regulated activity i.e. Fun Management for example, as long as you collect/solicit funds from the public your automatically captured by CMSA, AMLA, BNM and alll kinds of shite will start coming down on that Entity or Person.

Exception...

How to avoid all this problem?
Simple set up a company, investors become directors of the company. Each director will contribute equal shares (or whatever other proportion as may be decided upon). Each new subsequent investor is made a Director by contributing X amount of monies. BNM,

Partnership simply won't work, in the event of a loss/default everyone will kena i.e. there is no limit on the liability and its jointly and severally. Naturally the question would be, I invest Rm 10 why should i be liable for the Rm 90?

Reminders...
As long as you do not advertise!
As long as you do not solicit funds from public!
Make sure your monies come from a legitimate sos!

---

If you look further in the licensing handbook, pertaining to Capital Requirement, Experience and so on for a regulated activity.

For example:
Cap Requirement - RM 500K
Experience - Director - 10 yrs in Fund Management,Manager - 8 yrs in FM...etc.

Yes, ONLY in Malaysia lah! Not other country, coz they protect them self, and give way to cronies to make monies. Same case like AP for cars. Other countries got meh?

What citizen to protect? If the govt won't allow it legally, then illegal operator will exist. So dun blame them.

Your money/instruments in local bank is not 100% guarantee as well. So. where is the guarantee that big institute also safer place?

http://www.pidm.gov.my/About-Deposit-Insurance/Coverage.aspx

Types of deposits and instruments NOT protected
Certain deposits and instruments are not covered under the Government Deposit Guarantee. These are:
• Conventional structured products that are not principal guaranteed
• Deposits payable outside Malaysia
• Inter-bank money market placements
• Negotiable instruments of deposits held by banks
• Repurchase agreements

No - BNM or SC approval.

That is the right practice, keyword would be shareholders and not the public at large.

Other examples:

your company can be a onvenient store, since u have too much cash and the bank is paying peanuts, there is no reason why your company can't invest in stocks, shares, UT and bonds.

However the calculation of such investment/ tax/ structure and so on accountants will need to advise.

This post has been edited by aurora97: Oct 26 2009, 10:19 AM

oic... thanx so much for the advise & explanation, now need to get hunt for some accountant on this thread

I don't there is any law which stops you from putting your own company's money into the market - any market in fact.

How you raise s'holder money may be a problem. It would have to be a private sdn bhd and you could not publicise to sell shares nor could you list purely a ' investment ' company since you would need regulation.

but other that than private Sdn , your own money do what you like.

it's already going on albeit low key.

if anyone is truly serious then PM me.

beware of this scammer - he will ask you all to join his program. Pyramid sucker.

oh poor boy.

got hurt did you and so everyone now is a ' scammer '.

And don't lie please, never once did I or would I ask someone as pathetic as you to join anything.

By the way you previous post is bogus - of course MM , Repos , and NIs and not guaranteed , they are not available to the public at large.

these are 99% institutional players.

anyone who invests like would be better of just giving $ to charity at least it would serve a better cause then.

last post so dont bother replying .

bye , good luck with your fund, cause you sure as hell going to need it.

I did put this idea into this forum a few months back...but replied among forumers that we would not be able to beat the shark...I see that there are a lot of fund followinf the forumers...we pool our resources together to enter the market...