Broker-Dealer FINRA Due Diligence

The compliance requirements for securities broker-dealer FINRA due diligence obligations is more than just making FINRA and the SEC happy.  Non-compliance and failure to act has now reached a point where the broker-dealer vertical is being made to suffer as an industry for their lack of due diligence – not just by FINRA and/or the SEC – but by the market as a whole.  People have turned to technology to replace the RTAF Summary Report Screen Shottraditional broker-dealer role because the broker-dealer is no longer offering a sustainable value proposition to the market because the securities sold result in too much investment loss severity risk for the investing-public to value their services.  Technology was the answer for the market and now technology can be the answer for the broker-dealer industry to address it with INVIZEN.

INVIZEN provides, in our humble opinion, the most important due diligence services – the due diligence assessments, underwriting reviews and investment fraud claims risk reduction (oh yes, lower your E&O insurance premiums) that serve to help restore the reputation of the industry and the broker-dealer who uses INVIZEN to resolve their FINRA due diligence obligations.  The fact that we can help increase your transaction velocity, sales and profitability just make the story that much better.

FINRA Regulatory Notice 10-22 makes it really clear the government wants the CRE finance industry to clean up the property due diligence processes attending CRE securities private placement offerings pursuant to the Direct Participation Program.  Property due diligence requires more of us now than just verifying the lease and making a guess about subjective measures such as “tenant quality”.  Sears, ToysRUs, Caldor – the list goes way back in time and yet the losses have continued.  It is high time to admit the historical approach has only created to more historical losses and that a proactive approach is the only real solution that offers the potential for long-term risk management of investment loss severity risk.

CRE Investment Loss Severity Risk Prevention Program
Real-Time Status Asset Loss Program Operations Real-Time Phases

INVIZEN offers the only end-to-end solution specifically-designed to help end loan and investment losses in CRE securities private placement offerings by addressing the totality of the underwriting and due diligence issues in a real-time, proactive environment that only gets started with pre-closing due diligence.  The INVIZEN RTS program is designed to help prevent the key risks from becoming future asset impairment problems while also proactively managing and/or deterring investment fraud, management performance and foreclosure default event exposure.

INVIZEN helps eliminate future investment fraud claims risk be providing the only end-to-end solution specifically designed to kill the source of the claims – future investment failures due to market disruptions (i.e.: subjective investment risk owing to market risk) and the most common causes of administrative foreclosure default events.  The INVIZEN solution is designed to provide proactive, real-time reporting that allows us to provide real-time capacity, credit, collateral and default risk underwriting reviews and analyses of operations of commercial real estate property businesses every month of the asset holding period and do so in an affordable manner.

How affordable?

A 10-year subscription agreement costs less than 1.5% of the asset value (at time of enrollment) amortized over that 10-year period.  Face it, if your transaction cannot afford 1.5% more invested into helping prevent a future bankruptcy petition resulting from an unforeseen liquidity crisis, you are already underwater and need to pass on the sale of the securities to begin with.

RTAF Summary Report Screen ShotThere is so much more to the INVIZEN Real-Time Status Asset Care Protection Program that INVIZEN was intentionally designed to support:

  • CRE Developers & Sponsors.  Developers and sponsors seeking capital financing have the advantage of a systemic solution that provides the support needed to increase the odds of a successful capital financing outcome that saves time, money and reduces their capital investment risk.
  • Investors & Lenders.  Investors and lenders seeking to participate in commercial real estate securities private placement offerings and other credit instruments have the advantage of a systemic solution that provides the highest practical investment performance assurance we can contrive.  INVIZEN gives investors and lenders the proactive investment loss severity risk prevention and monitoring they really need, but have never been able to obtain in the past.
  • Broker-Dealers & Registered Investment Advisors.  Securities broker-dealers and registered investment advisors on both the buy-side and sell-side of the transaction have the advantage of a reporting system that provides FINRA compliance support, protection from future investment fraud claims, increased transaction velocity and the opportunity to increase their operating margins – all in one package.  If your firm doesn’t have this approach, then you are still operating in an environment that will penalize your opportunity to profit and control costs.

Talk to an INVIZEN representative today for more info

Find out more about the amazing technological advance that is INVIZEN and what broker-dealer due diligence can now mean for your firm’s benefit.  Contact INVIZEN today at 832.663.9634.