Due Diligence for Securities Firms

The regulatory environment we are experiencing is largely caused by financial firms' failure to conduct proper due diligence. While due diligence is not a new process, it is often challenging to find specific guidance as to how to carry out due diligence.

At Jacko Law Group, PC, we perform the necessary due diligence in preparation for your business transactions, fund formation, corporate mergers, and securities purchases. Our attorneys have a sophisticated understanding of the securities industry. We have advised many investment advisers, private equity/hedge funds, broker-dealers and professional financial advisors on compliance with federal securities regulations.

Our Due Diligence Services

In order to provide you with the background information that you need before starting your next venture, our securities attorneys and professionals conduct can conduct research on third party service providers as well as investment opportunities and the key individuals involved with those potential investments. We also help companies provide an internal control review. During this process, we examine:

• Compensation and fee practices
• Possible conflicts of interest
• The effectiveness of the investment process (products, investors and risks)
• The strength of the third party service's performance track record
• Past actions of the performance management team
• Evidence of fraud (Ponzi schemes, etc.)
• Any history of regulatory investigations

Due Diligence and New Product Areas

If you are considering introducing a new product to your platform, we can conduct due diligence on that product to determine if it is sound. We will ask question such as: who are the people involved (corporate makeup) and what is their performance track record and history? Were the appropriate disclosures made? How are you going to sell the product? How will you compensate individuals on the project? Are there any agreements to review (selling agreements, solicitor agreements, referral agreements, etc.)?

At Jacko Law Group, PC, we understand that trust is necessary in the securities industry. However, due diligence on business partners and projects is the only way to provide verification of their trustworthiness and avoid violating federal securities regulations.

For more information about due diligence, call our attorneys directly at 619-298-2880 or contact us online. We represent clients in California and throughout the United States.