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Originally Posted by OMG!WTF!
When you say need to get qualifications to be an investment manager, do you mean in order to get a job in the field? I'm having trouble understanding all the requirements for simply buying securities on someone else's behalf. Could Joe open up Joe's Trading Co. (not Trader Joe's Co) and begin trading on other people's behalf with other people's money? I know there would be all kinds of rules and regulations and disclosures as with secondary market investing. But does Joe need to prove his competency via professional designations?
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Well it depends on how exactly you're going to do that. But yeah, I have a hard time seeing an investment firm hiring people these days with no designations or qualifications. Maybe if you have been a PM for years and have a track record you could get a shot, but truthfully almost everyone there has the CFA.
But if you mean you want to trade on a discretionary basis for other people, you have to be regulated. You can't just open Joes Trading tomorrow and open a joint account and charge a fee. It's not that you have to prove competency, but you have to be licensed as a PM. Like I say that either means a CIM/CFA, basically and there is oversight. The securities industry is highly regulated and you can't just called yourself a PM and do what you please; its for the protection of consumers and over the past decade that has increased a lot, perhaps unsurprisingly.