CrowdSelect will meet all background and investor requirements under the new Regulation Crowdfunding rules recently approved by the SEC
San Diego, California. (PRWEB) November 17, 2015
Today, EarlyIQ, Inc. announced the immediate availability of EarlyIQ CrowdSelect, the company’s fully hosted suite of services that enables compliance by investment intermediaries including crowdfunding platforms and broker/dealers. CrowdSelect will meet all background and investor requirements under the new Regulation Crowdfunding rules recently approved by the U.S. Securities and Exchange Commission (SEC). The suite, built upon EarlyIQ’s proven hosted platform, can be fully integrated with partner sites for a seamless user experience and can be customized to provide deeper levels of information beyond basic compliance requirements to facilitate vetting and curating deal flows.
EarlyIQ CrowdSelect offers core background due diligence capabilities to ensure compliance with the Bad Actor disclosure and disqualification requirements in the new Regulation Crowdfunding final rules. Partners can deploy the suite as a fully integrated service via EarlyIQ’s APIs to provide a seamless end user experience. Alternatively, partners can choose to deploy the suite in a co-branded stand-alone instance which requires little to no development effort by the partner while still offering a simple partner-branded user experience. Beyond enabling regulatory compliance, partners can chose customization options within the suite.
“We’ve worked with EarlyIQ for 3 years since before they launched their first offering into the accredited investor funding market and have been extremely impressed with their approach to background diligence,” said Sherwood Neiss, co-founder of Crowdfund Capital Advisors and co-author of the Startup Exemption. “Since the JOBS Act was signed into law, EarlyIQ has been at the forefront of creating simple, streamlined, secure and comprehensive background diligence for online markets,” Neiss continued.
Under the rule, and similar to Regulation D, Rule 506 requirements, certain executives, directors, officers and owners of issuing companies are subject to certain disclosure requirements and defined disqualifying events whereby participation in the securities offering is not allowed. The EarlyIQ CrowdSelect covers all of the required background items. Additionally, partners can customize the background checking process by selecting from a menu of additional areas to be researched and triangulated by EarlyIQ. The result is a custom report that meets the specific business needs of each individual partner.
“EarlyIQ has a strong track record of providing background diligence on thousands of companies and individuals raising capital through Regulation D, Rule 506 and other private investment vehicles,” said Robert Hale, CEO of EarlyIQ. “We’re excited to bring this capability into the long anticipated Regulation Crowdfunding market.”
In addition to screening for disqualification and disclosure events, EarlyIQ CrowdSelect partners can customize their background diligence to include:
-Business entity verification
-Business civil record screening
-Positive online identity verification
-National criminal records search
-Civil record screening including tax liens, judgments, and bankruptcies
-Patriot Act records search through the OFAC database
-Other regulatory infractions search
-Undergraduate and graduate degrees verification
“The new rules create a tight definition for disqualification and disclosure. Our experience is that partners often want greater visibility and flexibility into background verification” stated David Trissel, Co-Founder of EarlyIQ. “Because crowdfunding portals are specifically allowed to curate their offerings, we expect most will go beyond simple regulatory compliance when evaluating the backgrounds of prospective offerings.”
EarlyIQ CrowdSelect is available immediately. Partners interested in learning more can access information at http://www.earlyiq.com/product/diligence-report To discuss customized deployment options, crowdfunding portals and broker dealers are encouraged to contact EarlyIQ at 858.345.4755 or via email, info(at)earlyiq(dot)com.
Early IQ, Inc. is a San Diego, California based, hosted software, information and analytics company serving early stage capital markets including broker/dealers, crowdfunding, accredited online funding, peer lending, angel, accredited and professional investment. We provide an industry-leading suite of tools for diligence, regulatory compliance and fraud mitigation. Our efficient, secure and streamlined solutions are used to help vet and evaluate private investment opportunities while also enabling compliance with Federal regulations including SEC Regulation D, Rule 506 accredited investor verification and Bad Actor compliance and Regulation Crowdfunding. http://www.earlyiq.com