VerInvest Corporation (“VerInvest”) today announced the launch of its highly-secure, financial verification clearing service for the alternative investment community. The platform provides its investor-members a confidential means to authenticate their accredited or qualified financial status, and connect with capital-raising companies and alternative investment funds.
As part of the 2012 Jumpstart Our Business Startups Act (“JOBS Act”), hedge funds, private equity firms and privately-held companies may advertise their investment offerings, provided they verify that investors meet certain ‘accredited’ standards.
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“VerInvest eliminates a barrier to growth with an innovative compliance solution,” said David Benway, Founder and Chief Executive Officer of VerInvest. “Designed to preserve privacy, our platform membership offers data security and convenience for investors, while issuers significantly reduce the costs and operational risks associated with JOBS Act compliance.”
VerInvest combines state-of-the-art technology and data-handling protocols to offer an exchange-grade clearing-style service. Financial information submitted by investors is carefully protected to ensure data security and privacy. Each certified member is assigned a unique alpha-numeric certification code that may be used as often as proof of accredited status is required.
VerInvest’s internal processes are specifically designed to satisfy both the letter and spirit of the “Safe Harbor” requirements set by the SEC, and adopted most recently by the Commodities Futures Trading Commission (CFTC). As an independent, third-party service, VerInvest eliminates the risk of conflicts associated with internally-managed or broker-administered verification. In addition, VerInvest certifications are backed by a multi-million dollar insurance policy against potential errors in analysis. When needed, an independent audit trail can be provided to satisfy regulatory and financial examiners.
For private companies and the fund management industry, as well as crowd-sourced capital platforms, VerInvest offers an efficient solution for managing a non-core compliance risk. Issuer member subscriptions include unlimited access to insurance-backed certifications, as well as audit features that offer compliance cost savings and other management benefits.
“Hedge funds, private equity firms, and other companies seeking private-placements can eliminate a significant compliance risk by using VerInvest, as well as demonstrate a marketable commitment to the highest standards of suitability and client data protection,” notes Benway.
Investor Member Benefits
• Personal financial information is securely stored; encrypted both in-transit and at-rest
• Investor privacy is preserved by providing a verifiable certification without revealing underlying financial information
• Convenient, portable, branded certification that can be used as often as needed to prove financial status Issuer (fund or company) Member Benefits
• Unlimited access to investor-member certifications
• Significant cost savings and operational risk reduction
• Independent audit trail for compliance and regulatory purposes, and insurance policy-backed certifications
