Individual Analysis and Assessment
A Private Placement Program trade is a complex process and is not really daily business. Every case is different. Tradesmore Ventures is NOT a broker or mediator and we never provide representation for them! Our partners and in our business network who are experienced lawyers and economists take care of the structure, connecting the involved parties, such as banks, investors, program managers and traders, the communication between the parties and due diligence. As previously explained, it makes no sense to block funds, pay upfront fees or sign any contracts before the structure is settled and committed to in advance.
1. Mandate
The investor files a mandate with Tradesmore Ventures which includes legal advice and representation. The mandate includes the following services:
Analysis of the investor’s situation and needs
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Legal advice before and during the whole process
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Structuring of the private placement program
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Due diligence regarding the source of funds
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Localization and contacting all involved parties and presentation of the project
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Selection, negotiations and contracting the banks
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Presentation and negotiation with the program manager
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Localization and contracting of a qualified (and real) trader or a trading team
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Preparing the pay-outs to the investor with the receiving banks
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Monitoring the trades and pay-outs of the profits
If an investor has an offer from a program broker or mediator, we offer a legal check and verification of the offered program for a fixed fee. We strongly recommend that the investor not sign any contracts, joint ventures or consultant contracts and never pay any upfront-fee before obtaining legal advice, verification and examination of the offer.
2. Analysis of the investor´s situation, KYC and due diligence regarding the funds
3. Setup compliance
After studying the viability of the operation, the investor will be provided with a compliance set (a set of documents) for them to be properly completed and signed. We will complete 90% of the compliance set so the client will simply need to review and then proceed to sign it.
4. Proof of Funds
Fund verification, source, bank certificate and verification by the Euroclear system/DTCC.
5. Joint Venture Agreement
Together with the compliance set of documents, the client will be provided with a “Commercial Agreement”, which is determined and managed by the ICC 600.
6. Due Diligence and asset verification
These are procedures which include verification of the assets and the execution of due diligence (under study for acceptance) for the client and the submitted assets. The client must not be connected with crime organizations, drug trafficking, weapons, terrorism or any other illegal activities. Also, the asset must be clear, clean, with a non-criminal origin and must be 100% freely available to the investor.
7. Direct contact with the program manager
The client will be contacted directly by the program manager via phone, Skype or a personal meeting.
8. Execution
The client’s bank will issue a Swift MT-799 prior notice and a Swift MT-760 lock to the bank the Trader specifies on the contract. The recipient of the MT-760 will be the trader, which enable him to “use” the funds through a loan given by a second bank that accepts the MT-799.
9. Contracting the trader
Trading contract will be concluded between trader and investor which includes the timing, arbitrage regulations, funds volume, markets, profit distribution, pay outs, etc.
10. Acceptance of the investor
Once the trading contract is signed and the assets are locked, the investor will be admitted to the program within about 15 banking days.
11. Start of trading
The trader will start trading after a final confirmation from the program manager.
12. The yields
The trader will continue with a formal invitation to collect the first yields. On the invitation, the investor will be informed of the day, time, place and bank venue where the pre-opened account will be located. For the length of the program, each account that is opened will be the destination for the collected yields.