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What We Do: Broker Dealers

 

New Rules - New Tools.


Enabling Broker/Dealers To Be SEC Regulation D, Rule 506 Compliant

Our online service checks for bad actors and verifies accredited investor status

The new amendment to Regulation D, Rule 506(c) allows for a completely new way to promote the sale of private securities through General Solicitation. With the new capabilities come additional regulations that require all investors to be verified as accredited investors and those who are considered "covered persons" are not "Bad Actors" as defined by 506(d). EarlyIQ helps broker - dealers to verify accredited investor status and check that covered persons (including the broker-dealer entity itself) are not "Bad Actors". 

Bad Actor compliance for ALL 506 deals

The new regulations for Bad Actor screening apply across all Regulation D, Rule 506 deals, not just those that are Generally Solicited under the new 506(c) regulation. This means that all 506 deals, including those sold the "old way", fall under the new Bad Actor screening requirement. By using EarlyIQ diligence reports or Rule 506 Reports and Accredited Investor Verification, you're assured that each deal is compliant with this new regulation. 

Who Is Responsible For Checking?

The burden of collecting data on investors is left up to the issuers and the brokers while preventing Bad Actors is the responsibility of anyone participating in the offering (covered persons). Our independent 3rd party services streamline Rule 506 Compliance and get you back to your core business.

  • Verify your investor's "Accredited Investor" status
  • Bad Actor 506 Rule disqualification check for all covered persons

 

Leave Investor Accreditation to a 3rd Party

We can verify the "accredited" status of your investors

If you are a broker-dealer doing private placements we can help you with Rule 506 of Regulation D compliance by verifying your Accredited Investors. Our simple SaaS platform allows your interested investors to pre-verify their status with us. Our process allows accredited investor verification without requiring sensitive financial data to be shared outside our system.

Broker - Dealers With Portal Partnerships

Many broker - dealers we work with have a partnership agreement with a crowdfunding portal or their own funding portal they manage. EarlyIQ can help in both situations by streamlining your diligence process for Regulation D, Rule 506 deals while also guarding against many prevalent forms of fraud including false and stolen identities. 

 

 

 

For Your Compliance Officer & Fund Manager

We offer quick, convenient and secure Reg D, 506 compliance. When your investors go through EarlyIQ's Accredited Investor Verification, we can issue a file on the accredited investor that proves their accredited status based on either net worth or income. 

 

 

 

Compliance Due Diligence for Reg D, 506(d) Bad Actor Check

The EarlyIQ Diligence Report satisfies the regulations while giving deep insight about potential deals that go beyond government mandates. The following disqualifying events are baseline, our report includes these plus additional information about your target investment such as verifications of education for the officers, past offenses that are not part of a "bad actor" definition like bank fraud as well as the elements needed to produce our proprietary fraud detecting TQ Score.

Disqualifying events we look for in our Diligence Report
  • Criminal convictions across multiple agencies
  • SEC orders that qualify as disqualifying events
  • Court injunctions and restraining orders
  • Finalized orders of certain state and federal regulators
  • USPS false representation orders 

The EarlyIQ Diligence Report also includes information on disqualifying events that occurred before September 23rd, 2013 - the effective date of the rule amendments. This information is required to be disclosed in writing to investors. 

 

 

 

Service Delivery Options For Broker - Dealers

We offer broker-dealers multiple options for verifying their investors and commissioning our Diligence Reports. For all options, we provide the best user experience and secure process available for both you and your clients.

Contact us to speak with an EarlyIQ Account Manager who will help you setup your Co-Branded landing page, Client Managed Portal or to receive our API documentation for Full Integration.  

 

Referral

due diligence for broker dealers

Take advantage of EarlyIQ's services by sending your investors to us or commission a diligence report online. Share with your investors our Accredited Investor Verification landing page or have your target investment commission a diligence report online. Finalized documents will be shared with you by your investor or issuer.

 

Co-Branding

investor verification for broker dealers

For higher volume broker-dealers or firms that want a more customized solution, we offer a co-branded experience for your clients. You're provided with custom pages and products which together create an experience closely tied to your brand. Flexible payment options are also available for co-branded partners.

 

Client Managed

broker dealer regulation d compliance

Take co-branding a step further and invite investors to verify their status or begin their diligence report from your own EarlyIQ dashboard. Personalize all aspects of your client's experience including the checkout process. Payment terms available to broker-dealers who opt for client managed portals. 

 

Full Integration

bad actor check for broker dealers

Streamline your user's experience, gain access to the EarlyIQ Platform via API with our Full Integration option. We will provide you with our API documentation and options for integration and development support that will enable you to deploy diligence reports and investor verification services within your platform environment.

 

 

 

 

 

 

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