Buy-Side & Sell-Side Due Diligence +

Broker-dealers and asset managers have been taught about the differences in their obligations regarding buy-side and sell-side due diligence – and crowdfunding sites have huge exposure.  The truth is there really is no difference because in today’s litigious securities environment and herd mentality, failure to treat the sell-side of the transaction the same way you treat the buy-side places you in the same risk pool with everyone else who is exposed to the high cost of E&O insurance and future claims of investment fraud.  Rainmaker Analytics is listed in the FINRA Compliance Vendor Directory.  We can help make it easier if you are willing to try.

Many sell-side broker-dealers have the dangerous habit of not wanting to rock the boat and just do the minimum of what’s required so they can get into the market – and pay the price.  This can potentially create the plaintiff counsel’s case without them having to do much of it by themselves.  We all know this is true because:

  • Insurance costs are skyrocketing and now insurance underwriters are routinely exempting alternative investments and commercial real estate securities transactions from coverage because the risks are not being recognized or disclosed out of fear of being excluded from future syndications; and
  • Revenues are coasting downward because the value proposition of the broker-dealer is suffering to the onslaught of technology that could only happen if the reputation and guidance of the broker-dealer is no longer viewed as being valuable; and
  • FINRA and SEC complaints have gotten to the point where FINRA has to send notices like Regulatory Notice 10-22 to remind broker-dealers that they are not performing their core function – you know, the one that justifies the very existence of the industry.  Underwriting has to be more than just the work done before funding – it has to be able to support the investment for the full term of the investment holding period.
  • INVIZEN supports the project and the participants the entire way with our exclusive suite of business planning services specifically designed to proactively manage execution risk because the budgets, goals and owner requirements are automatically updated and transmitted down to the line employee level through every level of management that includes tasking, productivity measurement and automated reporting.  What does your due diligence program have?
broker-dealer-investment-fraud-claims-loss-risk-management-prevention
INVIZEN Broker-Dealer Investment Fraud Claims Loss Risk Management & Prevention Program Operations

Broker-dealer due diligence can be made less expensive, less time-consuming and become the source of a whole new profit center thanks to the advent of the INVIZEN IT Commercial Real Estate Real-Time Due Diligence System and its accompanying suite of broker-dealer due diligence support services designed to help eliminate investment fraud liability exposure and increase profits.  If you don’t have it you are losing money ERM-enterprise-risk-management-plan-screenshotand opportunity.  If you don’t have it you may be at risk for still more complaints and still more premium increases.  If you don’t have it you may have to forego participation in CRE private placement offerings in DPPs.  If you don’t have it, you can’t grow your crowdfunding platform and can’t attract more investors and more sponsors.

If you don’t have it…

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.

business plan of operationsTalk to an INVIZEN representative today for more information on how we can help you control risk exposure and help provide the highest possible levels of investment performance assurance through a comprehensive market, finance and business operations due diligence monitoring, tracking and remediation program.

Find out what your opportunities could be by contacting our offices today at 832.663.9634.