Ensure Federal Securities Law Compliance

The due diligence process is a solid review or audit of a company, usually undertaken before a financial transaction, such as a merger or acquisition. It enables companies to undertake important transactions from an informed standpoint. It can add significant value for the buyer by showing where the target company’s weaknesses (or red flags) are, as well as identifying opportunities within the target company that were previously unknown. In such situations, engaging a due diligence consultant is a wise move, as a professional firm has an important role in the investigation.

Assessment And Compliance

Some clients want to buy a pre-existing broker-dealer shell. Others want to improve their current compliance programs. Whatever you decide, due diligence advisors at MAH can assist you by:

• Giving due diligence checklists and interviewing potential broker-dealer shell sellers
• Creating broker-dealer selling contracts
• Mock FINRA examinations and broker-dealer risk assessments
• Performing audits of branch offices
• Conducting independent AML audits
• Evaluating and improving the current compliance program and training efforts
• Annual testing to certify the broker-compliance dealer’s supervisory program in accordance with FINRA regulations
• Reviewing surveillance reports and creating “red flag” triggers to evaluate current surveillance efforts
• Answering regulatory inquiries and complaints
• Developing and testing the business continuity plan, anti-money laundering (AML), and Regulation S-P programs
• Compliance technology solution recommendations and implementation
• Transactions and Broker-Dealer Practices
• Assisting with completing all ongoing registration forms, submitting supporting documentation, and filing with FINRA and the appropriate state offices
• Writing, reviewing, and analyzing client documents (new account forms, privacy notices, prospectus receipts, exchange disclosures, quarterly performance reports, marketing disclosures, etc.)
• Reviewing and evaluating sales practices (use of finders, telemarketing, marketing tools & sales desk responses)
• Making and evaluating broker-dealer selling agreements
• Evaluating business continuity, disaster recovery, and succession plans
• Conducting due diligence of third-party service providers

Legal Due Diligence Services

Our corporate and securities compliance professionals can perform research on third-party service providers, investment opportunities, and the key players involved with those potential investments to give you the background information you need before beginning your next venture. We can check the following during this process:

• Compensation and fee arrangements
• Potential conflict of interest
• Investment opportunities (products, track records of performance, issuer background, and associated involvement risks)
• The reliability and track record of performance of the third-party service
• Management team background experience
• Any history of regulatory investigations
• Analysis of investor documentation, and much more

We at MAH Advising LLC (“MAH”) provide guidance to those who conduct due diligence in advance of business transactions, fund formation, corporate mergers, and securities purchases. We have a team of due diligence professionals who possess a comprehensive understanding of the securities industry. We have provided compliance advice on federal securities regulations to hundreds of investment advisers, private equity/hedge funds, broker-dealers, and professional financial advisers.