Rules for participation in private placement programs (PPPs) and Small Cap Trades
None of the customary standards and practices that apply to normal, conventional business, investing and finance apply to private placement programs.
There are certain rules that must be followed in order to enter into a PPP and we are here to help and guide you through the compliance procedure.
It is a “privilege” to participate in a Private Placement Transaction Program, not a “right”. The trading administrators and managers have a virtually endless supply of financially qualified applicants.
All applicants should never underestimate what the trading entities know about him. Failure to provide full disclosure will disqualify the disingenuous.
Clients must first prove that they are qualified before they are allowed to enter the program, not the other way around.
Until the client is accepted by Compliance, the Traders, and Trading Banks, no placement can occur. The U.S. Patriot Act has introduced obligatory compliance procedures.
Face to face interviews with compliance officers and program management are occasionally required, but generally not necessary.
Any arrogant or demanding personality is guaranteed to be refused.
Only the principal owner of the Asset is required as a signatory. Corporations must empower an Officer or Director as sole, exclusive signatory by using a Corporate Resolution.
The asset has to be on deposit in an acceptable bank, in an acceptable jurisdiction.
It is fraud to submit documents or financial instruments that are forged, altered or counterfeit. Such documents are promptly referred to the appropriate law enforcement agencies for immediate criminal prosecution.
The practices, procedures and rules are determined by the U.S. Federal Regulatory Authorities, Western European Central Banks, program management, licensed traders and trading banks. It is their decision whom to accept and whom to refuse.
Contract terms, yield, schedules, etc., are made to fit their needs and schedules – and not the caprices or demands of the investors.
This marketplace is highly regulated and strictly confidential, and absolute confidentiality by the investor is a key element of every contract.
A client who breaks confidentiality will precipitate instant disqualification.
Finally, submission of the application documents to more than one management group at a time is termed “shopping”. If an investor “shops” he can expect that this fact shall be quickly disseminated and known among the program management groups who maintain close communication – and will then be blacklisted and never accepted by any group.