Commercial real estate property business securities sales in Direct Participation Program private placement offerings have created a much larger investment fraud risk exposure for broker-dealers, registered investment advisors and dual-licensed firms due to the complexities of these businesses. INVIZEN offers a new way forward with our proactive DPP investment fraud risk reduction management services that provide a proactive, real-time solution that is fast, efficient and affordable whether you are a large wirehouse or small IBD. DPP investment fraud risk reduction is a real issue as the costs of E&O insurance continue to spike and insurance underwriters continue the practice of excluding commercial real estate and alternative investment transactions from their coverage of loss events.
INVIZEN’s proprietary technology and intellectual programs are specifically designed to help the CRE finance community not just comply with FINRA Rule 2310, but extend beyond that envelope and transform this risk element into a profit-taking opportunity that can continue into perpetuity for the placement agent (buy-side) broker-dealer on a given asset or portfolio of assets.
INVIZEN offers a real-time underwriting solution that presents the first, true end-to-end solution that helps manage and reduce investment loss severity risk on commercial real estate assets (and thereby eliminating the source of investment fraud claims as a by-product). The INVIZEN system can do this because it gives the industry what it really wants – a fast and affordable system for re-underwriting the entire investment each and every month of the asset holding period for the entire term of the investment. INVIZEN takes this phenomenon to the next level by:
- Providing proactive protection that is designed to virtually eliminate the prospect of a bankruptcy petition resulting from an unforeseen liquidity crisis over the term of the investment; and
- Providing up to 24 months of advance notice of pending market disruptions that could impair future asset value and become the source of future investment fraud claims that have real defense costs for your firm; and
- Providing proactive investment performance assurance while helping insulate the parties at-interest from foreclosures caused by the most common administrative default issues that plague the CRE industry; and
- Providing FINRA compliance documentation support; and
- Creating the opportunity to dramatically increase sales; and
- Allowing the buy-side broker-dealer to more aggressively negotiate for placement agency agreements with sponsors; and
- Allowing the sell-side broker-dealer to get into the market faster and sell that hot issue before their competitors who do not have INVIZEN can finish their required due diligence reviews.
Find out more about the amazing suite of broker-dealer services that help reduce operating costs, increase profits and do so without necessarily increasing fraud claim risk exposure. Contact us today at 832.663.9634.