03 Aug 2010 Investment Groups
In today’s fast moving financial sphere not everyone likes to go it alone. Some may prefer to join a club or a group and pool their resources and funds and invest together over a pre-determined time period. This can be done by successfully creating a group of investors sharing a common goal, that being to combine investment opportunities, expertise, support and training.
This is the opportunity to be part of a group of people who pool all their resources to fund new upcoming companies.
Every member of the group will buy “a ticket” worth pre-determined amount. Each ticket will be split into two contributions; namely the payment in respect of the fees of the service provider and the fiduciary provider and the rest will be the amount dedicated to investment within the group which will be placed in a trust account with the fiduciary company.
The fiduciary will hold the group account which will consist of the pooled funds of all the investors of that group. The group will then have the opportunity to meet and discuss potential investments periodically as the groups deems fit. Once the investors of the group decide to invest part of their pooled funds the group leader who is chosen on the first meeting after the group has been set up, can issue the fiduciary a letter of wishes expressing their interest in the investment. The fiduciary in turn will release the specific amount of funds from the group’s account and sends it to the chosen investment.
Although the investment will be done as a group each investor will be investing shares in his own name for his share of the pooled funds invested. The remainder of the group’s funds will remain in the fiduciary’s group account awaiting subsequent instructions through the same above procedure.
Who can invest?
Basically anyone can be part and invest in this group environment. Individuals who normally invest alone or established business professionals who would like to invest within a group can benefit from this pooling of resources, potential start-up investments and ideas.
Retired individuals can also benefit from this structure by bringing their time and expertise to the group.
New business individuals will benefit as well as they will be exposed to continuous active learning, support in making investments and decision making within the group.
- Contribute by bringing all your experience to the group and learn in a way that is convenience for you. You will have the chance to express your opinions and compare business ideas through observing doing and finally deciding on a particular investment.
- Time Management strategies. Every investor will spend as much time as he can wherever he can to analyse a portfolio of potential start –up investments while having the peace of mind that should he be unavailable the group will still proceed with the proper analysis and decision making.
- No auditing is required of the fiduciary’s group account.
- Reduced Risk through group investing. Collective pooling of investor’s resources and expertise provides added security in finalising investments.
No licensing is required by investors. This will definitely be more cost effective as there are no regulatory application to be filled in or any licensing fees incurred.
lecocqassociate provides a full range of financial regulatory, corporate and commercial advice in relation to the structuring and incorporation of entities.
This newsletter is for information purposes only. It does not constitute professional advice or an opinion. Please contact Mr. Dominique Lecocq on *protected email* for any questions.