Due Diligence Counsel

Ensure Federal Securities Law Compliance

Conducting due diligence on investments, professionals, and crucial service providers is vital. Conducting sufficient due diligence is a fiduciary duty for investment advisers.

We at MAH Advising, LLC (“MAH”) provide guidance to those who conduct due diligence in advance of your business transactions, fund formation, corporate mergers, and securities purchases. Our attorneys have 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.

Our Due Diligence Services

Our corporate and securities attorneys and 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

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, 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
  • Review surveillance reports and create “red flag” triggers to evaluate current surveillance efforts.
  • Answering regulatory inquiries and complaints
  • Development and testing of the business continuity plan, anti-money laundering (AML), and Regulation S-P programs
  • Compliance technology solution recommendations and implementation
  • Transactions and Broker-Dealer Practices
  • Assist 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.)
  • Review and evaluation of sales practices (use of finders, telemarketing, marketing tools & sales desk responses)
  • Making and evaluating broker-dealer selling agreements
  • Evaluation of the business continuity, recovery from disaster, and succession plans
  • Due diligence of third-party service providers

Due Diligence Can Help You Protect Your Business

The securities industry requires trust, and MAH is aware of this, but the only way to confirm their reliability and stay out of trouble with federal securities regulations is to conduct due diligence on business partners and projects.