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Questions Answered by Chris Warren
1 Answer | Asked in Securities Law for New York on
Q: Is a short term investment tragedy in the best interest for the client, according to the new BI rules? How is it?

Client is aware of fees associated with this strategy and wants to implement this strategy in his/her well diversified portfolio.

Chris Warren
Chris Warren
answered on May 4, 2023

A short-term trading strategy can comply with regulation B-I as long as the fees are reasonable and disclosed, the client authorizes the strategy, there is appropriate supervisory compliance of the account in place, and there is not a conflict of interest between the client and the broker.

2 Answers | Asked in Securities Law and Stockbroker Fraud for New York on
Q: Financial investment question

I currently have access to a crypto investment fund through an individual who trades to make a group of us money, and I want to open it up to friends and have them go through me in order to invest. I pay $200/mo to have access to the fund, so I would charge them $100/mo and have them go through me.... View More

Chris Warren
Chris Warren
answered on Jun 16, 2022

This response does not constitute legal advice.

Yes. If you take your friends' money for access to an "investment fund" an "individual" (read: not a broker) runs, you could be violating several securities laws as well as potential "blue sky" State laws....
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