3rd Party Marketeer Review

As an independent research firm, Investment Checkers provides due diligence reports on third-party marketers and introducers who connect private investment opportunities with accredited investors in the United Kingdom. Our comprehensive examination evaluates the professionalism, integrity, and compliance of these intermediaries across ten key assessment criteria, including background checks, regulatory awareness, investor suitability procedures, due diligence practices, and transparency in communications. 

This allows private investors to access an objective, reputable two-page overview report that succinctly conveys the legitimacy, competence, and reliability of the third-party marketer or introducer before engaging with any investment opportunities they present. In essence, we help investors mitigate risks associated with unvetted intermediaries and ensure they are working with professionals who adhere to high standards of ethics and accountability in the private investment space. 

Our third-party marketer and introducer validation reports offer an independent perspective that self-reported information alone cannot fully provide. The insights aim to give investors added confidence that the intermediaries they work with exhibit integrity, competence, and a commitment to investor protection. By enlisting Investment Checkers' validation offerings, private investors can more confidently navigate the complexities of the private investment landscape and build trusted relationships with reputable third-party marketers and introducers who have been independently verified. 

Background and Qualifications Check 

We thoroughly examine the background and qualifications of the principals and key personnel involved in the third-party marketing or introducing firm. This includes verifying educational credentials, professional certifications, employment history, and industry experience. Any discrepancies, misrepresentations, or undisclosed information that could impact credibility are highlighted. 

Regulatory Awareness and Compliance 

While third-party marketers and introducers may not be directly regulated by the Financial Conduct Authority (FCA), it is essential that they demonstrate a clear understanding of and adherence to relevant UK financial regulations, such as the Financial Services and Markets Act 2000 (FSMA) and the Prospectus Regulation Rules. We assess their knowledge of these rules and their compliance procedures to ensure they operate within legal boundaries and do not engage in any activities that could be deemed as unlicensed investment advice or financial promotions. 

Due Diligence Practices 

We evaluate the thoroughness and consistency of the due diligence procedures employed by the third-party marketer or introducer when vetting private investment opportunities before presenting them to investors. This includes assessing their research methodologies, information verification processes, risk assessment techniques, and ongoing monitoring practices to ensure investment quality and suitability. 

Investor Suitability and Sophistication Assessment 

An in-depth review is performed to validate that the third-party marketer or introducer has robust processes in place to properly assess the suitability and sophistication of potential investors before presenting them with private investment opportunities. This includes examining their investor intake forms, assessment criteria, and adherence to applicable UK regulations governing the promotion of non-readily realisable securities to retail investors. 

Transparency and Disclosure Practices 

We carefully assess the transparency and completeness of the information provided by the third-party marketer or introducer to investors, including offering documents, risk disclosures, fee structures, and any potential conflicts of interest. Any instances of inadequate, misleading, or omitted information that could impact investor decision-making are highlighted. 

Marketing and Financial Promotion Practices 

A thorough evaluation is conducted on the marketing and financial promotion materials used by the third-party marketer or introducer to promote private investment opportunities. This includes reviewing websites, presentations, brochures, and other collateral for accuracy, clarity, and compliance with FCA guidelines on fair, clear, and not misleading financial promotions. 

Investor Communications and Reporting 

We assess the quality, timeliness, and responsiveness of investor communications and reporting practices employed by the third-party marketer or introducer. This includes examining the frequency and content of investment updates, performance reports, and other investor touchpoints to ensure transparency and keep investors well-informed throughout the investment lifecycle. 

Data Protection and Cybersecurity Measures 

A comprehensive review is performed on the data protection and cybersecurity measures implemented by the third-party marketer or introducer to safeguard sensitive investor information. This includes assessing their data encryption practices, access controls, incident response plans, and compliance with the UK General Data Protection Regulation (GDPR) to mitigate the risk of data breaches or unauthorised disclosures. 

Investor Complaints and Dispute Resolution 

We investigate the history of investor complaints, if any, against the third-party marketer or introducer and evaluate their processes for handling and resolving disputes. This includes examining complaint logs, reviewing relevant correspondence, and assessing the adequacy and timeliness of remedial actions taken to address investor concerns and protect their interests. 

References and Reputation Assessment 

Comprehensive reference checks are conducted with previous clients, industry peers, and other relevant parties to gauge the overall reputation and track record of the third-party marketer or introducer. Any negative feedback, unresolved issues, or concerns raised by past investors or counterparties are carefully documented and reported to provide a well-rounded assessment of their professional standing.