Managed Account Qualifications

Do I Qualify for a Managed Account?

You must be a Qualified Eligible Person to qualify for a Managed Account. If you are not a QEP, don’t worry, Full-Service Accounts are available as well.

What is a Qualified Eligible Person (QEP)?

The Commodity Futures Trading Commission’s (CFTC) definition of a QEP is complex and there are numerous ways to qualify as a QEP. For example, certain registered Investment Advisors and Non-US citizens are automatically considered QEPs. However, most individual investors must satisfy the CFTC’s Portfolio Requirement AND be an Accredited Investor in order to be a QEP.

  1. The Portfolio Requirement: Owns > $2 million in securities, or Has an Futures Commission Merchant account > $200,000, or Combination of above (for example $1 million in securities and $100,000 in an FCM account).
  2. An Accredited Investor is defined as: A natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $2 million at the time of the purchase, or has assets under management of $1 million or above, excluding the value of their primary residence; or A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

If you are not sure if you meet the definition of a Qualified Eligible Person (QEP), please give us a call at 949.488.0545.

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