Crowdfunding Background Checks for
Intermediaries Under JOBS Act
Employment Screening Resources® (ESR) provides background check services to Intermediaries who are providing access to capital through the provisions of the Jumpstart Our Business Startups (JOBS) Act to Issuers of securities.
Specifically, ESR background checks play an integral part in helping Intermediaries fulfil their duty to take appropriate measures to reduce the risk of fraud by Issuers by:
- Conducting background checks and securities enforcement regulatory history check on each issuer whose securities are to be offered by the intermediary and on each officer, director or beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities
- Determining if an Issuer is disqualified from participation under the “Bad Actor” Rules.
In addition, ESR can also assist an Intermediary preform its own required due diligence background checks and financial regulatory checks on its own employees.
ESR will work with Intermediaries to develop an appropriate and cost-effective levels of due diligence.
(Note: ESR operates as an independent agency and is not an associated person of a broker or dealer as defined by law.)
For more information about crowdfunding background checks for Intermediaries under the JOBS Act, call ESR Sales Toll Free at 888.999.4474 or email firstname.lastname@example.org.