Due Diligence Upload By Representative
Upon execution of an engagement agreement, the registered representative is responsible for uploading the applicable diligence files via the Due Diligence Checklist Form. The submitted forms can be found in the the following folder:
The AML Diligence Review is designed to assess the risk of a Seller or Issuer's non-compliance with anti-money laundering regulations and "Bad Actor" disqualification from Regulation D offerings. It includes a background check of the Seller and/or Issuer entity, its key managers, officers, and directors, as well as >20% shareholders. The AML Diligence form can be found here:
The Legal Diligence Review is designed to answer the essential suitability question: is this offering suitable for ANY investor? It constitutes an objective review of the Seller and/or Issuer's corporate governance documentation, the offering terms, and an assessment of certain qualitative risks. The Legal Diligence form can be found here:
After completion of the AML and Legal Diligence, the documentation must be reviewed by a firm principal for ultimate Approval or Rejection of the proposed offering's distribution.
Upon completion of the Principal Diligence Review Form, the requesting representative will be automatically notified of the offering's approval, rejection, or request for revision.
FINRA Form 5123
As soon as possible after the first sale of securities in an offering, a firm principal must complete the FINRA Form 5123 for Private Placements. The information needed to complete the Form 5123 can be assembled from information found in the following locations: (1) the respective company's Due Diligence Checklist Folder, (2) Legal Diligence Folder, and (3) the initial sale's Order Ticket.
The FINRA Form 5123 can be completed via the following instructions:
- Login to the WebCRD Firm Gateway
- Forms and Filings
- Private Placements
- Open Filing
- Begin New Form
- Complete the Rule 5123 Form
Legacy Due Diligence Report
Certain firm consulting clients have engaged the firm to conduct a diligence report. Rather than shift client expectations, the firm continues to use the Legacy Due Diligence Report for such clients.