Series 22: Processing Subscription Agreements

Processing Subscription Agreements

When an investor’s subscription documents are complete and have been approved by the issuer or sponsor, the general partner will formally accept and sign the subscription agreement. Any accompanying checks will be logged in a sales blotter and processed according to the terms listed in the offering document.

Any broker-dealer that participates in a private placement underwriting is responsible for going through the subscription agreement and making sure that:

• the issuer’s representations are true

• the documents are filled out correctly

• the investor has read the subscription agreement and understands it

• the investor understands the risks associated with the investment

• the investor meets the offe