New York-based business intelligence firm, Charles Griffin, has launched its Accredited Investor Verification Service, in response to the "ambiguity" surrounding how hedge funds must ensure their investors are accredited.
The new service aims to act as a hedge against Securities and Exchange Commission’s (SEC) expanded regulatory oversight, and ensure that fund managers demonstrate, among other things, that their investors are "truly accredited and financially sophisticated".
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According to Charles Griffin Intelligence, the Accredited Investor Verification Service goes beyond the routine background checks that many hedge funds now employ when accepting new investors.
Charles Griffin Intelligence will examine investors’ professional licenses, US 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 – Gold, Silver, and Bonze. The research takes from one business day (Bronze) up to one week (Gold), and the cost ranges from US$450 (Bronze) to US$2,000 (Gold) per individual.
Charles Griffin Intelligence founder, Philip Segal, said: "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.
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By GlobalData"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."
