Sunday, 31 July 2016
Last updated 1 day ago
May 14 2013 | 10:04am ET
Consulting firm Charles Griffin Intelligence wants to help hedge funds ensure their investors are accredited.
The recently passed JOBS Act ended an 80-year ban on hedge fund advertising but stipulated that investors must be accredited. And while some ambiguity surrounds the definition of an 'accredited' investor, the Securities and Exchange Commission has made it clear it will scrutinize hedge funds' accreditation processes closely.
In response, Charles Griffin has launched an accredited investor verification service.
“While hedge fund managers now have more opportunities to market their funds to the public, they also open themselves to greater scrutiny than ever before, and our services help them withstand that scrutiny,” said Philip Segal, founder of Charles Griffin Intelligence. “Our accredited investor verification service eliminates the worry for hedge fund managers, who will now have to show they have taken ‘reasonable steps’ to verify that all purchasers of funds are accredited investors.”
The consulting firm will examine investors’ professional licenses, U.S. securities filings, litigation filings, bankruptcy and lien filings, NFA and FINRA records, and also conduct on-site court searches for all relevant public records.
The new service offers three levels of diligence, with searches taking from one day to one week and costing from $450 to $2,000.