Warrenton, VA asked in Banking, Business Formation, Business Law and Securities Law for Virginia

Q: Does a company need to register as a financial advisor if partners or members are only buying/selling securities?

Wanted to know because I'm looking to open a partnership or llc. No financial advice will be given to partners or members. One person would do all the transactions on behalf of company. This is for investment purposes.

1 Lawyer Answer
Robert W. Pearce
Robert W. Pearce
PREMIUM
Answered
  • Securities Law Lawyer
  • Boca Raton, FL

A: If the transactions are by the Managing Member or General Partner for and only on behalf of the company in only its private securities account and the company is not in the business of just buying and selling securities as a Broker or Dealer then in my opinion no registration would be required.

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