kaal:claim:1428387-020

The Commodity Exchange Act family and friends exemption allows a qualifying manager to trade options and futures for fifteen individuals who need not be sophisticated or qualified investors, which circumvents accredited investor standards and admits retail investors into hedge funds.

Source quote, verbatim

"families and friends" program, he or she will be able to trade options and futures for 15 individuals who will not have to qualify as sophisticated or qualified investors. This helps to circumvent accredited investor standards and allow retail investors into hedge funds.

From

Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009), IV.B.2 CFTC Rules, p. 37
https://ssrn.com/abstract=1428387 · source PDF

Cite as

Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387

Holds when

where the fund manager qualifies for the families and friends CTA registration exemption

Classification

mechanismsupport: arguedfailure: exemption-circumventionfamily: regulatory-arbitragedefi

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 6aa3a280dc6750723be2389f3af2aabf3a16c4ce20e49fcdaddd7f2ea95a67aa. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/d8848b9c3c63b957...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/1428387-020.md | sha256sum