Not Every Broker-Dealer is an EB-5 Broker-Dealer
Many broker-dealers whose membership agreements grant them authority to sell private placements assume that this gives them the ability to sell EB-5 securities. However, if a firm has authority to sell private placements, that does not necessarily mean that they are qualified to sell EB-5 securities. While sold as a private placement within the U.S., EB-5 securities are a specialized product which require additional controls, policies and procedures. EB-5 issuers who seek to engage a broker-dealer to sell their offerings, should learn about that broker-dealer’s experience with EB-5 securities.
Author – William B. Mack
Greenberg Traurig, LLP