BROKER DEALER SERVICES
For Partnerships, Private Funds, and Issuers
transaction, and settlement of private and other exempt securities,
for example such as offers under Regulation A+, D, and
Regulation S. When conducting securities offerings,
issuers and professional intermediaries,
such as fundraising platforms, may be required to use
licensed representatives at times. We provides the option to
affiliate with our broker-dealer in order to hold
licenses and provide oversight compliance for securities
transactions handled via the firm.d other exempt securities, such as offerings under Reg A+, Reg D,
and Regulation S. Issuers and professional intermediaries, such as funding platforms, may be
required to have licensed representatives when conducting securities offerings. LC Escrow offers the ability to affiliate
with our broker-dealer to hold licenses and provide compliance oversight of securities business
conducted through the firm.
We are experienced as a managing broker for Reg A+, Reg D, and Reg S offerings. Our team provides expertise in:
- Qualification of SEC and FINRA
- Investor Due Diligence or vetting
- Review of Advertising
- Escrow for Subscriptions
- Settlements and Payments
- Custody
Our experience, combined with our open, API-enabled
technology and procedures,
ensures quick and predictable turnaround times,
allowing our clients to optimize
Perform Investor Screening
We offers services to conduct the required compliance
checks before accepting an
investor into a securities offering. Among the
services offered are:
- Verification of Accredited Investors
- Checks to ensure that you know who you’re dealing with
(KYC) - AML (Anti-Money Laundering) Checks
- Suitability Checks for Investors
- Offers to transact
These tests can also be sent by API or using one of
our technology products..
Team of Experts
Several Series 24 Registered Principals monitor the
firm’s broker dealer activities as part of the
LC Escrow team.
To ensure regulatory compliance with FINRA rules and
advice, these processes have been meticulously devised
and perfected.
To maintain a high level of compliance, we essure that
our personnel are qualified experts that try to
deliver the finest service to the firm’s clients.
Keeping track of our investors' information
LC Escrow stores confidential investment information on
secure systems,
eliminating the need for clients to worry about
security.
Any of LC Escrow’S technological solutions can also collect
and
store this information in our systems electronically
via API.
Ensure Investor Protection and Transparency
As a registered broker dealer, LC Escrow is responsible for
ensuring that investors are safeguarded and that
all risks are properly communicated to all investors
prior to their acceptance into any securities
transactions offered by us.
Our staff assist clients by providing disclosure
statements and analyzing all offering and marketing
materials to verify that all information is accurate
and risks are disclosed.
Carry out due diligence
In compliance with FINRA NTM 10-22 and Rule 2111,
we will perform “reasonable basis” due diligence.
During this period, an LC Escrow
representative will assess your proposal, which will
include an independent study of the project economics
and a review of the proposal
materials (pitch book, offering memorandum, entity
formation documents, risk disclosures, subscription
documents).
The goal of the assessment is to determine if the
offering is suitable for investors
and to ensure that the offering materials are devoid
of major misstatements and omissions of information to
the best of our ability.
Prior to closing, we will engage with you and your
counsel to address any red flags or other potential
disclosure concerns.
To read more about our due diligence approach, click
here.
Approval of Advertising
To guarantee “fair and balanced” compliance and reduce
the risk of an unintended 10b-5 violation,
LC Escrow will assess any offering communications that
constitute “communication with the public” under FINRA
Rule 2210 – dissemination of
information to more than 25 recipients within a 30-day
period. A registered principal will examine these
materials, respond to any comments or questions,
and approve the materials after the principal believes
the content is fair and balanced and meets the
requirements of Rule 2210
Services of supervision and advice
We’ll be happy to offer advice on any aspect of your
offering, including facilitating investments through
qualified,
self-directed accounts (IRAs, ROTHs), post-transaction
reporting, communicating with investors and managing
customer complaints (if any), and interacting with
administrators, accountants,
and transfer agents, among other things. There is no
extra payment for guidance and counsel provided as a
side benefit of the product.
Escrow for Subscriptions
LC Escrow can act as an escrow agent and support the
formation and maintenance of a subscription escrow
account for the collecting and management of investor
monies if the offering is a contingent offering, as
defined by SEA Rule 15c2-4. There is no necessity to
employ LC Escrow, but due
to the large volume of exempt offerings with which we
are involved each year, we are often a low-cost source
for subscription escrow.