C&SS Client Services Overview
Compliance and Settlement Services (C&SS) provides clients raising capital under SEC Regulation D exemptions with an outsourced, comprehensive, and turnkey investor onboarding process. Every aspect of properly documenting and verifying the investors who would like to invest in your securities offering are provided on your behalf and in compliance with the SEC recommendations and requirements. The C&SS services not only save your company time and resources but helps to protect the entire offering from being subject to a rescission or repurchase event.
C&SS performs these services on behalf of its clients:
Review and preparation of the clients Private Placement Memorandum (PPM), Subscription Agreement, and Investor Questionnaire – together the “Offering Documents” for electronic delivery and signature via DocuSign – inclusive of proprietary forms designed by C&SS for the verification of Accredited Investor Status, source of funds, and verbal communication by the company with its potential investors about the contemplated investment.
Sending of the DocuSign Offering Documents to the potential investors with follow up to verify receipt and assist with instructions to properly effect the Offering Documents.
Upon receipt of DocuSign Offering Documents follow up with potential investors to ensure that they have the required information for sending funds that correspond to the investment represented in the effected Offering Documents.
Verify that the effected Offering Documents have been properly and completely filled out and that the various investor names and details are homogeneous throughout.
Provide a background check on the potential investor to ensure that they are not listed in the Office of Foreign Asset (OFAC) or “Bad Actor” databases.
Upon receipt of funds verify that the source of funds matches exactly to the named investor as provided in the effected Offering Documents.
Provide an Anti-Money Laundering (AML) check on the funds deposited on behalf of the named investor.
Contact potential investor to receive the documents that correspond to the method of accredited investor verification as provided in the effected Offering Documents. Assist potential investor with the process and if needed provide alternatives for verifying their status as an Accredited Investor (as defined by Regulation D rule §230.506(c)(2)(ii)).
Contact potential investor to receive the documents that correspond to the method of accredited investor verification as provided in the effected Offering Documents. Assist potential investor with the process and if needed provide alternatives for verifying their status as an Accredited Investor (as defined by Regulation D rule §230.506(c)(2)(ii)).
Review submitted Accredited Investor Verification documents and verify that the potential investor has met the criteria established by the SEC.
Provide notification throughout the process to C&SS client to keep them informed about the status of each potential investor.
Upon successful verification and validation of all requirements permitting potential investor to be “accepted” by the client in its Offering provide client with a Verbal Verification form that documents that an Officer or Director of the company has directly communicated with the potential investor about the Offering.
Compile and electronic (pdf) archive of all effected Offering Documents, verification of funds source, background checks, AML check, and Accredited Investor Verification for each potential investor and send client a single archive for each upon completion of the process.
Provide settlement payments to Broker Dealers, Finders, or marketing partners in accordance with established agreements.
Upon close of the Offering C&SS will compile all documents related to all investors and all disbursements made on behalf of the Offeror into a single pdf that will be emailed to Offeror, Offeror’s counsel, and archived by C&SS for 90 days.
The various exemptions of registration allowed by the Securities Exchange Commission (SEC) under Regulation D §230.504, §230.506b, and §230.506c specify that the Offeror of securities under these exemptions adhere to certain recommendations and requirements as laid out by the Commission. Failure to adhere to these recommendations and requirements expose an Offeror of securities relying on these exemptions to various regulatory actions which could adversely impact funds raised under the benefit of the exemptions. Compliance and Settlement Services has specifically designed a system and methodology that, when implemented on its clients behalf, meets or exceeds the recommendations and requirements of the Commission. Remove the doubt of compliance from the already complicated task of raising capital for your company – let C&SS effectively and efficiently handle the onboarding of your investors in compliance with the regulations and recommendations established by the SEC.