Marco Polo Exchange Featured by Alea Global Group
The following article was originally published by Alea Global Group. You can read the original article on the Alea Global Group website.
Introducing Marco Polo Exchange
Marco Polo Exchange (MPX) is a FinTech services platform, and the first reg tech solution for Foreign Financial Institutions (FFIs) to compliantly access US securities markets and US institutional capital directly. MPX was launched in 2021, and today has 100+ international FFI clients from 50+ countries that offer funds, deals, research and trading services to US institutional buyers, with a strong pipeline of equal size.
We spoke to Jeremy Oades who explained more about the platform.
What is Marco Polo Exchange (MPX) and where did it come from?
The current project is a business started just over two years ago. It’s a new take on something that people have been doing for almost 10 years. This particular opportunity is a form of licensing called a 15a-6 chaperoning license; in America, it’s a rule within the aegis of the SEC (Securities and Exchange Commission) and FINRA (Financial Industry Regulatory Authority). SEC as a government organization, FINRA is a self regulatory, industry organization, but the two of them together basically oversee the compliance and regulation of all finance business in America.
The US has the largest pool of institutional capital anywhere in the world, so it’s clearly one of the favored markets everybody wants to access. But there are obviously a lot of rules and regulations about who is able to access it; how they access it; the compliance around maintaining that access, so there’s no dodgy relationships or bad money sources; the managing of individual representatives working within those organizations having to be registered and licensed and regularly updated with continuing education. And then there’s the products and services that they’re selling have to be compliant; they have to have necessary disclaimers; they have to be targeted at the right people; they have to be properly documented with all of the necessary disclosures. And then all of that needs to be updated on a very regular basis with any changes in the rules and any updates with the company themselves, or the individuals or the products, all of which means that it’s quite a lot of work to actually manage that situation.
Previously, one would have to basically engage a law firm, probably have an internal compliance officer yourself, and probably have an office in the US, probably employ local employees that are locally licensed and trained, and supported, all of which is an extremely expensive endeavor. And you would probably have to spend a lot of money on that as a front end cost, before you even start developing business in the US. And then there’s the issue of maintaining it, and keeping it current. And the liability that comes with that.
What MPX, or Marco Polo Exchange, has done is take the framework of a chaperoning broker, which traditionally has been there to provide the function to be able to bring foreign firms from overseas into America in a regulatory compliant way. And so the opportunity to do this has been around for a long time. But because of all of the costs, and because it’s a tedious process and a very detailed one and a very important one to get right, there are very few companies that have chosen to provide this full service. And the few that have, which do exist, have tended to do it in a very, very narrowly defined way that happens to suit a particular business model of their own.
What MPX has done is to create all of that as a completely open shop. So it’s done in a platform environment, where all of the activities can be performed by the foreign company from overseas. All the way from submitting the paperwork, to going through the process, to registering the individuals to doing the KYC to doing the continuing education, all of it can be done at arm’s length, but they can have a direct relationship with the end investor.
What kind of growth has MPX seen in its two years of operation?
Currently almost all of the business on the platform have been clients that have found us through the website. So we haven’t even done any external marketing. So it’s clearly a service that is in very high demand. And at the moment, only people that know about it are looking for it. So they’re exploring, they’re finding it just through its labeling on the internet. And they’re signing up. So currently we’re growing at almost 100% increase each year, which obviously is very small.
So that’s not such a dramatic number just yet. But we are doubling the number of clients each year so far. And I expect that will continue for at least another one or two years. In fact, we hope that that number will increase dramatically in the next few years, because we are currently raising money to expand and build a sales team. So we can actually do proactive sales, to get the message out there. And also to expand the team that is bringing the companies on board.
Because while the process is largely automated through the systems, because of very, very advanced, very high quality systems, they can upload all the information they require directly from where they are. So there’s no physical exchange of papers or anything needed to do it, which is a huge change from what it used to be.
With this platform having taken such a complicated process and automating it successfully, are there other ways the platform could be used to streamline similarly complex processes?
It’s in fact one of the main reasons I decided to get involved with the platform. As much as I want to help them grow, I’ve done a lot of work in the world of impact investing, and climate change, basically the UN sustainability issues, and I would very much like to see this platform used for sustainability purposes.
We have a presence through the subscribers in 50 countries already, and that’s growing rapidly. I feel quite strongly that there is a possibility to use it for things like helping create a marketplace for netzero financial products, or to a soft financing hub for SMEs. If we have already created the platform and paid for it, then we don’t need a budget to maintain it. We’ve just got to get everybody on board. So first things first, we need to get the platform up and running and successful. But that is certainly part of our phase two thinking.
More about Marco Polo Exchange
The platform centers on two complementary products:
- MPX Passport, the first fully electronic regulatory onboarding and reporting system cuts processing time from weeks to hours, slashes costs, and provides full compliance for direct relationship development. Over 100 securities and advisory firms are already active and another 150+ in the process of onboarding. They cover over 50 countries across Europe, Canada, UK, Asia, emerging and frontier markets.
- MPX Bridge, an AI driven marketplace for primary capital raising, where firms registered on Passport can showcase deal flow and manage transaction workflow between themselves and invited buy-side investors. The space will be curated by AI and driven by profile, preference and activity data from the investors and the platform.
Read the original article on the Alea Global Group website here.
SEC Rule 15a-6 for CIRO Members: How MPX Passport Streamlines Compliance
Navigating cross-border financial activities presents a challenge when it comes to regulatory compliance. For members of the Canadian Investment Regulatory Organization (CIRO), understanding SEC Rule 15a-6 is essential to engaging U.S. clients efficiently and securely. This blog post explores the key provisions of SEC Rule 15a-6, its implications for Canadian financial institutions, and how MPX Passport simplifies compliance, helping you overcome regulatory hurdles and expand your business into U.S. markets.
What is SEC Rule 15a-6?
SEC Rule 15a-6, established by the U.S. Securities and Exchange Commission (SEC), outlines the conditions under which foreign broker-dealers can engage with U.S. clients. This rule facilitates cross-border transactions while ensuring investor protection and market integrity. Under SEC Rule 15a-6, non-U.S. broker-dealers can interact with U.S. institutional investors without registering as U.S. broker-dealers, provided they work through a licensed U.S. broker-dealer chaperone.
Marco Polo Exchange, through its broker-dealer affiliate Marco Polo Securities, Inc., offers tech-enabled compliance solutions that align with SEC Rule 15a-6, simplifying cross-border transactions and ensuring regulatory compliance.
Here are some of the Key Provisions of SEC Rule 15a-6 for CIRO members to be aware of:
1. Interaction with Major U.S. Institutional Investors:
Foreign financial institutions (FFIs) can conduct business with major U.S. institutional investors (AUM > $100 million) and certain other institutional investors (AUM > $10 million) through a registered U.S. broker-dealer chaperone like Marco Polo Securities Inc., the broker-dealer affiliate of Marco Polo Exchange.
2. Chaperoned Transactions:
Foreign broker-dealers can solicit and conduct securities transactions with U.S. investors if chaperoned by a registered U.S. broker-dealer like Marco Polo Securities, Inc., the broker-dealer affiliate of Marco Polo Exchange. The U.S. broker-dealer must participate in the transaction and take responsibility for the compliance of the foreign broker-dealer's activities.
3. Research Reports:
Foreign broker-dealers can provide research reports to U.S. institutional investors through a registered U.S. broker-dealer, adhering to SEC content and distribution requirements.
4. Principal Trades with U.S. Investors:
Foreign broker-dealers may engage in principal trades with U.S. investors if the trades are effected through a registered U.S. broker-dealer chaperone and the U.S. broker-dealer takes responsibility for the trade and ensures compliance with U.S. regulations.
5. Record-Keeping and Reporting:
Foreign broker-dealers must maintain and provide access to transaction records to ensure compliance with U.S. regulatory standards.
Challenges Faced by CIRO Members in Complying with SEC Rule 15a-6
CIRO members face several challenges in complying with SEC Rule 15a-6 when engaging with U.S. institutional investors:
- Regulatory Complexity:
CIRO members must comply with both Canadian and U.S. regulations, which can be complex and sometimes conflicting. Regulatory requirements frequently change, necessitating continuous monitoring and updates to compliance practices. Marco Polo Securities, Inc., the broker-dealer affiliate of MPX, works with all of their chaperoned clients to ensure that they are in compliance with US regulations.
- Operational Hurdles:
Ensuring that compliance systems and processes align with both Canadian and U.S. requirements can be technically demanding. MPX Passport streamlines the compliance process.
- Enhanced Due Diligence and Supervision:
Thorough Due Diligence: CIRO members must conduct comprehensive due diligence to ensure compliance with SEC Rule 15a-6, which requires significant time and effort.
- Increased Supervision:
Continuous supervision and oversight of cross-border transactions are necessary to ensure ongoing compliance, adding to the operational burden. CIRO members must be prepared for regulatory audits and inspections, requiring meticulous documentation and record-keeping practices. MPX Passport allows for easy uploading of documents to ensure FFIs remain in compliance with US regulations.
Navigating U.S. Markets Made Easy for Foreign Financial Institutions with MPX Passport
MPX Passport is Marco Polo Exchange's proprietary Reg-Tech platform designed to streamline the process for foreign financial institutions (FFIs) to access U.S. capital markets through SEC Rule 15a-6, offered through Marco Polo Securities, Inc., the broker-dealer affiliate of MPX. Built on industry-leading technology, MPX Passport integrates regulatory compliance, workflow management, and distribution capabilities into a single, user-friendly portal. This innovative tool enables FFIs to meet cross-border compliance obligations efficiently, without the need for a U.S. broker-dealer license.
Key Features of MPX Passport for SEC Rule 15a-6
Regulatory Compliance: Ensure full compliance with SEC Rule 15a-6 through a comprehensive suite of tools designed to meet U.S. securities laws, offered through MPX’s US broker-dealer affiliate, Marco Polo Securities, Inc.
Workflow Management: Manage all aspects of your business operations, including deal placements, trading blotters, research reports, and client interactions, in one centralized platform.
Distribution Capabilities: Seamlessly distribute your investment products to U.S. institutional investors through a compliant and efficient electronic environment.
Advanced Analytics: Gain insights into your market performance and client relationships with customizable dashboard tools and detailed reporting features.
Efficient and Compliant Access to U.S. Markets through MPX Passport
CIRO members face significant challenges in navigating the complex regulatory landscape of the U.S. capital markets. MPX Passport offers a solution that simplifies compliance with SEC Rule 15a-6, enabling CIRO members to focus on expanding their business without the administrative and financial burden of obtaining a U.S. broker-dealer license.
Benefits MPX Passport for CIRO Members
Faster Time to Market: MPX Passport accelerates the process of entering the U.S. market by providing a streamlined, compliant pathway for cross-border transactions.
Maintained Brand Identity: Continue to build and promote your brand in the U.S. market while leveraging the regulatory framework provided by MPX Passport.
Full Transparency: Benefit from full visibility into your compliance status and business operations with real-time reporting and monitoring tools.
Key Functionalities of MPX Passport:
Self-Registration: Easily create an account and company profile, upload onboarding documents, and execute agreements through a simple online process.
Product and Activity Registration: Use data-driven technology tools to efficiently register your products and activities, ensuring ongoing compliance with regulatory requirements.
Customized Solutions for CIRO Members:
In addition to MPX Passport, Marco Polo Securities, Inc., the broker-dealer affiliate of MPX, offers the opportunity for CIRO members to employ a dedicated sales team based in the U.S. to enhance real-time interaction with U.S.-domiciled institutions, backed by comprehensive HR, compliance, and IT support.
Conclusion
Navigating SEC Rule 15a-6 compliance is critical for CIRO members looking to engage with U.S. institutional investors. MPX Passport provides an efficient, automated solution that simplifies the compliance process, mitigates risks, and enhances operational efficiency, through MPX’s US broker-dealer affiliate, Marco Polo Securities, Inc. By partnering with MPX, CIRO members can focus on their core business activities while confidently navigating the U.S. regulatory landscape.
Navigating SEC Rule 15a-6: A Guide for Canadian Exempt Market Dealers
The United States buy-side is the largest source of foreign capital for Canadian issuers, both primary and secondary. According to Pitchbook Data, about 44% of Canadian private equity deal value involves US investors. So far this year, that number is over 80%. As Canadian Exempt Market Dealers (EMDs) increasingly seek to expand their reach into the U.S. market, understanding and navigating SEC Rule 15a-6 becomes crucial. This rule provides a framework that allows foreign broker-dealers, including Canadian EMDs, to engage in certain activities with U.S. investors without full SEC registration. Marco Polo Exchange is here to guide you through the essentials of SEC Rule 15a-6 and ensure your cross-border transactions remain compliant and efficient.
Understanding SEC Rule 15a-6
What is SEC Rule 15a-6?
SEC Rule 15a-6, enacted under the U.S. Securities Exchange Act of 1934, offers exemptions from registration requirements for foreign broker-dealers. This rule aims to facilitate international securities transactions while ensuring that U.S. investors are protected.
Key Provisions of SEC Rule 15a-6
• Foreign Broker-Dealer Exemption: Allows Canadian EMDs to engage in certain limited activities with U.S. investors without full SEC registration.
• Intermediary Arrangements: Permits Canadian EMDs to operate through a registered U.S. broker-dealer, which acts as an intermediary.
• Chaperoning Requirements: Specifies situations where Canadian EMDs must be "chaperoned" by a registered U.S. broker-dealer.
How SEC Rule 15a-6 Applies to Canadian EMDs
Foreign Broker-Dealer Exemption
Canadian EMDs can leverage this exemption to interact with U.S. institutional investors and major U.S. institutional investors. Activities typically include unsolicited transactions and limited solicitations, provided they meet the rule's criteria.
Intermediary Arrangements
Under Rule 15a-6(a)(3), Canadian EMDs can partner with registered U.S. broker-dealers to facilitate transactions. This arrangement requires the U.S. broker-dealer to oversee compliance and supervisory functions, ensuring all activities adhere to SEC regulations.
Chaperoning Requirements
When engaging in solicitation or offering securities to U.S. institutional investors, Canadian EMDs need to be chaperoned by a U.S. broker-dealer.
Compliance and Regulatory Considerations
Record-Keeping Requirements
Canadian EMDs must maintain detailed records of transactions involving U.S. clients. This includes documentation of communications, trade confirmations, and compliance with regulatory requirements.
Anti-Money Laundering (AML) Compliance
Adhering to AML regulations is critical. Canadian EMDs should implement robust AML policies and procedures, ensuring they align with both Canadian and U.S. standards.
Reporting Obligations
Understanding and fulfilling reporting obligations under SEC Rule 15a-6 is essential. This includes timely submission of required documentation and regular updates to both Canadian and U.S. regulatory bodies.
Practical Tips for Canadian EMDs
Building Effective Intermediary Relationships
Select a reliable U.S. broker-dealer partner with a strong compliance track record. Regularly review and update partnership agreements to reflect current regulatory requirements and ensure mutual understanding of responsibilities.
Ensuring Smooth Operations
Stay informed about changes in both Canadian and U.S. regulations. Engage in continuous compliance training for your team and conduct regular internal audits to identify and address potential issues proactively.
Introducing Marco Polo Exchange's Passport: Your 15a-6 Compliance Tech Solution
Marco Polo Exchange provides 15a-6 chaperoning services through its cutting-edge reg tech platform, Passport. Passport allows Canadian EMDs to track their marketing activities to the U.S. buyside and provides comprehensive summary and management dashboard information about their business operations. MPX is able to provide chaperoning services on Passport through their US broker dealer affiliate, Marco Polo Securities, Inc.
Benefits of Using Passport:
• Real-Time Tracking: Monitor all U.S. marketing activities in real-time.
• Compliance Management: Ensure all interactions comply with SEC Rule 15a-6 requirements.
• Data Insights: Access detailed summary information and management dashboards for better business oversight.
Conclusion
SEC Rule 15a-6 offers opportunities for Canadian EMDs to engage with U.S. investors even if they do not have a registered U.S. broker-dealer license. By understanding the rule's provisions, maintaining stringent compliance, and leveraging strategic partnerships, Canadian EMDs can expand their market presence while safeguarding their operations.
MPX offers a technology solution with embedded licenses to facilitate accessing US buy-side accounts via its Passport™ platform. Passport supports and facilitates Canadian Exempt Market Dealers’ marketing and compliance challenges, so that your sales team can focus on closing business.
For more information and personalized guidance, contact Marco Polo Exchange. Our team of experts is ready to help you navigate SEC Rule 15a-6 and achieve your cross-border business goals. With our Passport platform, you can ensure compliance, manage your marketing activities efficiently, and gain valuable insights into your business operations. By optimizing your understanding and application of SEC Rule 15a-6, you can confidently expand into the U.S. market and enhance your business growth.
Demystifying SEC Rule 15a-6: What You Need to Know About Chaperoning Services
What is SEC Rule 15a-6?
SEC Rule 15a-6 is a regulation established by the U.S. Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934. Also known as the "Foreign Broker-Dealer Chaperoning Rule," it outlines the conditions under which non-US broker-dealers and other foreign financial institutions (FFIs) can conduct business with US institutional investors (the US buy side). This rule aims to regulate cross-border transactions while ensuring investor protection and market integrity.
At its core, SEC Rule 15a-6 allows non-US broker-dealers to interact with US institutional investors under specific circumstances without registering as a broker-dealer in the US. Instead, they can rely on a licensed chaperoning broker-dealer to facilitate these transactions within the bounds of regulatory compliance. Because of SEC Rule 15a-6, certain foreign financial institutions are exempt from registering as U.S. broker-dealers under specific conditions.
What is a 15a-6 Chaperone?
A 15a-6 chaperone, also known as a 15a-6 chaperoning broker, serves as an intermediary between non-U.S. financial institutions and U.S. institutional investors. This role is critical in ensuring that foreign broker-dealers can engage with U.S. markets while adhering to the stringent regulatory requirements set forth by the SEC.
Key Responsibilities of a 15a-6 Chaperone:
Regulatory Oversight:
The chaperone ensures that all transactions comply with U.S. securities laws and SEC regulations. This includes supervising the execution of trades and maintaining detailed records to ensure transparency and compliance.
Facilitating Transactions:
Acting as a bridge, the chaperone enables foreign financial institutions to offer their investment products and services to U.S. institutional investors. The chaperone provides the necessary oversight to facilitate these transactions smoothly.
Expert Guidance:
A reputable 15a-6 chaperone possesses deep expertise in regulatory compliance and cross-border finance. They offer comprehensive support and guidance, helping FFIs navigate the complexities of the U.S. financial market.
Risk Management:
By ensuring adherence to regulatory standards, chaperones help mitigate the potential risks associated with cross-border transactions. This safeguards both the foreign broker-dealers and U.S. investors involved in these transactions.
Benefits of Working with a 15a-6 Chaperone:
Access to U.S. Markets: Non-U.S. broker-dealers can engage with U.S. institutional investors without the need for full SEC registration.
Regulatory Compliance:
Chaperones ensure that all transactions meet the stringent requirements of U.S. securities laws, providing peace of mind to foreign financial institutions.
Operational Efficiency:
By leveraging the expertise and infrastructure of a chaperone, foreign broker-dealers can streamline their operations and focus on their core business activities.
Choosing the Right 15a-6 Chaperone:
When selecting a 15a-6 chaperone, it is crucial to choose a firm with a proven track record and extensive experience in regulatory compliance. A reputable chaperone will have not only the necessary licenses, but also a deep understanding of both U.S. and international financial markets, and the technology to make the process as smooth as possible.
Marco Polo Exchange (MPX) stands out as the largest provider of 15a-6 chaperoning services, offering unparalleled expertise and a comprehensive suite of services to facilitate compliant and efficient cross-border transactions for foreign financial institutions.
What sets MPX apart is its Reg-Tech enabled platform, MPX Passport, which integrates advanced technology to automate compliance checks, monitor transactions in real-time, and ensure adherence to U.S. securities laws. This tech-enabled approach not only enhances operational efficiency but also provides a higher level of security and transparency, making MPX the preferred choice for foreign financial institutions seeking to engage in the U.S. markets. MPX is able to provide chaperoning services on Passport through their US broker dealer affiliate, Marco Polo Securities, Inc.
What is 15a-6 chaperoning service?
The chaperone service enables FFIs, not licensed in the US, to distribute investment products to US institutional investors. In a chaperoning arrangement, a registered U.S. broker-dealer acts as an intermediary or "chaperone" between the foreign broker-dealer and the U.S. client. The U.S. broker-dealer provides oversight to ensure compliance with U.S. securities laws and regulations.
The US Securities and Exchange Commission (the “SEC”) adopted Rule 15a-6 in 1989 to provide certain exemptions for foreign broker-dealers to engage in securities transactions with US customers without registering with the SEC. Over the years, the scope of Rule 15a-6 has been expanded and clarified through a series of related no-action letters, notably the “Seven Firms Letter” in 1996 and the “Nine Firms Letter” in 1997. Additionally, the SEC released responses to frequently asked questions (FAQs) regarding Rule 15a-6 in March 2013.
15a-6 chaperone law
SEC Rule 15a-6 is not a law in the traditional sense but rather a regulation enacted by the United States Securities and Exchange Commission (SEC). The purpose of SEC Rule 15a-6 is to regulate cross-border interactions within the global financial market, balancing the need for investor protection and market integrity with the facilitation of international investment activities. Compliance with this rule is essential for FFIs seeking to engage with US institutional investors, as it delineates the permissible scope of their activities and the necessary safeguards to mitigate potential risks.
Reg-Tech enabled 15a-6 chaperoning
Marco Polo Exchange (MPX) offers the most comprehensive and secure tech-enabled registration environment for foreign firms to compliantly enter the US markets through MPX Passport. Marco Polo Securities, Inc., a wholly owned subsidiary of MPX, is licensed by the SEC to provide chaperoning services to MPX clients.
15a-6 chaperoning broker
As mentioned, the term 15a-6 chaperoning broker and 15a-6 chaperone are interchangeable. FFIs can solicit institutional buyers of execution services, deal flow and data products through MPX’s leading chaperone service. MPX is the largest 15a-6 chaperone in the United States.
15a-6 chaperone exemption
The provision within SEC Rule 15a-6 that establishes the conditions under which cross border transactions can occur between foreign financial intuitions (FFIs) and US institutional investors without requiring the FFI to register as a broker dealer in the US, through a licensed US chaperone.
The 15a-6 chaperone exemption refers to the provision under Rule 15a-6 of the Securities Exchange Act of 1934 which allows foreign broker-dealers to engage in certain activities in the United States without having to register with the Securities and Exchange Commission (SEC). This rule is designed to facilitate cross-border securities transactions while maintaining investor protections.
Under this exemption, foreign broker-dealers can conduct a limited range of activities, such as:
- Effecting unsolicited trades: Foreign broker-dealers can accept and execute trades that are initiated by U.S. investors without any solicitation.
- Engaging in specific transactions with certain U.S. institutions: They can conduct business with certain qualified institutional buyers and major U.S. institutional investors.
- Chaperoning by a U.S. broker-dealer: Foreign broker-dealers can engage in certain solicited activities if they are "chaperoned" by a registered U.S. broker-dealer. This means the U.S. broker-dealer supervises and participates in the transaction, ensuring compliance with U.S. securities laws.
The chaperone exemption is particularly important for foreign broker-dealers looking to access the U.S. market without undergoing the full registration process, provided they adhere to the conditions set forth in Rule 15a-6.
Conclusion
Registering and maintaining a US broker-dealer can be difficult for FFIs, from both a time and cost standpoint. Working with a 15a-6 chaperone can provide a more cost-effective way to engage in broker dealer activities in the US without having to register as a US broker dealer. With over 120 clients foreign financial institution clients served, MPX is the leading provider of automated 15a-6 chaperoning service. Contact us today to learn more.
15a-6 Chaperoning: Pathway to the US Capital Markets
The US Capital Markets
The U.S. capital markets are the deepest, most dynamic and most liquid in the world, offering tremendous opportunities for securities firms looking to raise capital for their clients. However, our robust securities regulations provide challenges for foreign financial institutions seeking access to the US capital markets.
US Regulatory Environment
The SEC and FINRA provide essential services to the US economy and our capital markets participants. In the process of providing oversight and protection, they have created rules and regulations that securities firms must comply with.
The Choices for Foreign Financial Institutions
For foreign financial institutions interested in doing business in the United States, there are two options: The first option is to establish their own US broker-dealer, and the second option is to enter the US with a chaperone under SEC Rule 15a-6. The process of establishing a US broker-dealer is complex and bureaucratic, involving a significant time and financial commitment.
The 15a-6 Chaperoning Solution
The SEC permits foreign financial institutions to operate in the US through a chaperone under Rule 15a-6. A 15a-6 chaperone, registered with the SEC and FINRA, oversees and supervises the activities of the foreign firm in the U.S, allowing them to remain compliant with the SEC and FINRA.
Benefits of 15a-6 Chaperoning
Employing a 15a-6 chaperone comes with several benefits. Most importantly, chaperones help foreign financial institutions remain compliant with all applicable U.S. laws and regulations, safeguarding them from potential legal issues. Moreover, they provide access to U.S. institutional investors, a valuable resource that may not be easily accessible to foreign firms. They also can provide expert guidance on navigating the intricacies of the U.S. capital markets.
Does 15a-6 Apply to Your Firm?
If you are considering accessing the U.S. capital markets, you might be wondering whether your organization qualifies as a Foreign Financial Institution (FFI) under Rule 15a-6. In general, a foreign financial institution refers to any non-U.S. entity that is engaged in the business of buying and selling securities. This can include investment banks, broker-dealers, asset managers, private equity firms, insurance companies, banks, financial services firms, government entities, and other specialized financial institutions involved in securities transactions.
MPX Passport
Marco Polo Exchange has streamlined the 15a-6 chaperoning process through our state of the art platform, MPX Passport. Passport enables foreign financial institutions to quickly and easily remain compliant by providing comprehensive regulatory and back-office solutions that ensure a smooth, compliant, and efficient experience. Passport is provided exclusively for foreign financial institutions that work within a 15a-6 chaperoning agreement with Marco Polo Securities Inc., MPX’s broker-dealer subsidiary.
Conclusion
The U.S. capital markets offer immense opportunities, but the path to these can be complex for foreign firms. With 15a-6 chaperoning, this journey becomes significantly easier. By ensuring regulatory compliance, providing access to institutional investors, and delivering expert insights into the U.S. capital markets, 15a-6 chaperones serve as an invaluable ally for foreign financial firms.
Partner with Marco Polo
If your firm is a foreign financial institution with ambitions to grow in the United States, schedule a call with our team to discuss partnering with MPX and Marco Polo Securities for US chaperoning.