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Does Directpost sell to investors?
No. Every accredited investor will invest through an unaffiliated Broker-Dealer engaged with Directpost through a Directpost Dealer Agreement. Investors with existing relationships with Registered Representatives of Broker-Dealers will retain that relationship. Investors without an existing relationship with a Broker-Dealer or Registered Representative will be able to choose a Broker-Dealer. Certain institutional transactions may occur without a Broker-Dealer.
How do Registered Representatives log-in to the site?
Upon registering with Directpost, Registered Representatives will be asked to provide their CRD number. With this information, Directpost will verify whether, and to what extent, they will have access to information on available offerings. Registered Representatives will only be able to access offerings that their Broker-Dealer will allow.
Does Directpost require a Managing Broker-Dealer?
No. Directpost is an information site. The use of a Managing Broker-Dealer is determined by Sponsors. As each Sponsor structures its syndication model as needed, it may or may not involve services from a Managing Broker-Dealer.
Does Directpost’s fee impact Broker-Dealer fees?
No. Directpost’s fee is an administration expense for each offering. As an information site, fees paid by Sponsors to Directpost are offering costs and do not effect the Broker-Dealer fees.
Does Directpost review for suitability for each subscription?
No. Each investor’s suitability review is performed by the Registered Representative and Broker-Dealer of record for that investor. Directpost reviews Blue Sky filings, Form D filings and Anti Money Laundering. Directpost connects directly with SEC Edgar, FINRA Broker Check and FINRA’s OFAC Search Tool.
Does Directpost require a Clearing Arrangement?
No. All Directpost business is “Direct Application” business that does not require a Clearing Arrangement.
How does Directpost address “Bad Actor” disqualifications?
Directpost connects to SEC Edgar and FINRA Broker Check. Due diligence reports by Mick Law, P.C. will address any Bad Actor disqualifications.
How does Directpost handle 5123 filings?
Cabin Securities, Inc. will submit 5123 filings on behalf of the Broker-Dealers.
How does Directpost handle the payment of commissions?
Directpost will handle the payment of commissions via ACH.
How does Directpost handle Blue Sky filings?
Directpost will submit Blue Sky filings on behalf of the Sponsors.
Does Directpost list all offerings presented to it?
No. In order to be listed on Directpost a Sponsor must sign a Listing Agreement, meet listing standards and obtain a Due Diligence opinion from Mick Law P.C. Directpost staff will review the Mick opinion and work with the Sponsor to resolve any red flags and only then will an offering be listed.
Does Directpost have a Privacy Policy?
Yes. Here is a link to our Privacy Policy.
What access will Broker-Dealers have to Sponsors for due diligence questions, etc.?
Any user of Directpost may use the chat feature to pose a question to a Sponsor. Questions will be reviewed by Directpost staff before they are published. A Sponsor must respond to each question posed. Sponsors’ responses are reviewed by Directpost staff to make certain that the question posed has been answered. Questions and answers are published to reduce the time answering the same question multiple times.
Is Directpost a Broker-Dealer?
Directpost is an Office of Supervisory Jurisdiction “OSJ" under a FINRA Broker-Dealer.
Is there an investment minimum?
Yes. There are investment minimums for each offering. However, in some cases a sponsor may have the discretion to accept investments below the stated minimum.
What is a Direct Participation Investment?
A Direct Participation Investment is a financial security that enables investors to participate in a business venture’s cash flow and taxation benefits.
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