In today’s middle market there are thousands of entities that function as unregistered broker-dealers in violation of state securities law, an unfortunate fact which includes many M&A practitioners who often aren’t aware of it. What many executives don’t realize is that when you hire an unregistered representative on your deal, a buyer can legally void a transaction for up to three years after the deal closes. This is an enormous and unnecessary risk to take, one that we at Belstone find unacceptable.
For this reason and others we went the extra mile, not only to fully comply with the Uniform Securities Act and the Financial Industry Regulatory Authority (FINRA), but to find and partner with the best dedicated compliance talent we could find. This process led us to IIB Corp, a separate company from Belstone, which is a registered broker-dealer with FINRA, the Securities Investor Protection Corporation (SiPC) and the U.S. Securities and Exchange Commission (SEC).
Through IIB Corp we ensure legal and regulatory compliance by registering our principals. More than that, we add to our capabilities a distinct skillset that directly helps navigate the regulatory environment. Where other firms may employ part-time compliance officers or none at all, at Belstone we have access to a full and dedicated team of experienced professionals.