Hate to crash your party folks but please read before proceeding to do anything...

This are the people who were caught and fine +imprisoned.

http://www.sc.com.my/ENG/html/enforcement/CriProsecution2008.html

handling private money is never easy, if your so called investment group is found to commit any offences by Securities Commission. You could be liable to a fine + imprisonement.

Read the licensing handbook by Securities Commission...






Attached File(s)
 licensinghandbook.pdf ( 662.24k ) Number of downloads: 34

Legal means you have to be license by Securities Commission to handle other peoples monies.

Let me highlight the issue:
1. To have a "Group"
2. To "pool" money from the "public"
3. Final one "soliciting" the public to invest by using the "media"

3 offences in a span of 1 day hhahaha...

Confirm with Secuties Commission or Bursa Malaysia.. they can guide you on this.

Though your plan is ambitious but not necessarily impossible, you just need someone on the inside to guide you.

My opinion...

Easy is more an over-statement, rediculous would be more accurate to describe the situation. Most smaller brokers have already been eatten or torn apart by larger peers in the industry, all because this regulatory bodies hold on to the brokers license.

This two regulatory bodies have godlike powers, they r always right and brokers always wrong. One does the talking, while another does the whipping. Strictly no carrots if u do anything right, they always must find some shit on a broker be4 they are satisfied.

"They" are moving towards a more self reliant and shifting responsibility to brokers and denying any responsibility on their part and expect brokers to spoon feed them, everytime there is a problem rather than contributing ideas.

Only if thee collection is for the purpose in investment schemes...

say u have a pool of friends, every put Rm 50,000 and you invest it in the market that is a form of fund management.

No offence collecting debt ... but it depends on the intention at the end.

If u collect for the purpose of MLM or Stolen goods or Investment link Scheme etc...

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Added on April 10, 2008, 10:59 amgo to Sc.com.my , seach for Licensing Handbook and refer to Fund Management.

you need license for the person running the organisation and also license for the organisation...

Other special requirements...

they might require you to have market experience, its a ver controlled market so not everyone can enter into the market.



This post has been edited by aurora97: Apr 10 2008, 10:59 AM

[quote=chin20350,Apr 15 2008, 09:31 PM]
[quote=aurora97,Apr 10 2008, 10:50 AM]
Only if thee collection is for the purpose in investment schemes...

say u have a pool of friends, every put Rm 50,000 and you invest it in the market that is a form of fund management.

No offence collecting debt ... but it depends on the intention at the end.

If u collect for the purpose of MLM or Stolen goods or Investment link Scheme etc...

---

Added on April 10, 2008, 10:59 am
my english not so good... not so clear about ur explanation..sorry

so that means it is offense to law if i collect from my fren and relatives for investing purpose??

[/quote]

yes.

if u dont tell, no one in that group of ppl complain or got disupute than ur ok, but if there is dispute and they lapor police sure will kena kau kau

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.

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