A family office is a combination of prop firm and hedge fund, in that
it trades only proprietary capital and is largely exempt from
regulatory oversight, while deploying mostly long term strategies like
a hedge fund.
The rise of the family office underscores the difficulty of
successfully managing a hedge fund in a highly regulated global
environment. Legendary investor George Soros has converted Soros Fund
Management from a hedge fund into a family office. Steven Cohen,
founder of consistently profitable S.A.C. Capital Advisors shuttered
the firm following a bruising insider trading investigation, then
reemerged in 2014 as Point72 Asset Management, also structured as a
family office.
IS THERE ANY SEPARATE CLASSIFICATION OF FAMILY OFFICE ?
HOW TO GET ONE FOR YOUR TRADING FIRM ?
There isn’t any family office classification for routing your trades. You may choose to structure your family office in form of a company (Public, Pvt. or OPC), Partnership firm, Sole Proprietorship, HUF (if you’re Hindu, Jain or SIkh), Trust, etc.
Hopefully, this will help. Cheers.
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If trading from big capital which structure is best individual or private company and will forming company enhance the credibility and also limit liability.
You’ll be in the best position to understand your requirements. Perhaps, you could also consult an accountant. However, forming a company might make sense if you’re looking to create a clean structure where accounting for incomes and expenses from trading/investing would be easier to allocate. Keep in mind that there is significantly more regulation involved in a corporate entity structure.
A reiteration. Consult an accountant with the details of your needs. Cheers.
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thanks i already consulted an accountant but he like many others is not completely aware of the nuisances of trading stocks and derivatives .