When working with FINRA Broker-dealer, it’s not enough that they simply have the required licenses that are necessary, so make sure to ask some questions:
- Are you registered in all 50 states
- Are you register for RegA+
It is also key to understand what they actually do when you are raising capital. These are some of the basic questions you need to ask of them:
- Who contacts the investor if payment does not go through?
- Who contacts the investor if there is a problem with KYC (Know Your Client information)?
- Who contacts the investor for IRA payments?
- Who contacts the joint investors?
- Who contacts the investor if there are problems with sub agreement?
- Who contacts the investor if there are problems during the investment process?
Bottom line:
As a company, do you need to do anything once the investor clicks submit to make their investment?
Answers is: NO
You should be focusing on raising capital and the FINRA Broker-dealer (who charges 1% for compliance services) is responsible for doing all of the above compliance and +.
