Maintaining a Robust Due Diligence Program for Complex Products ...
Due diligence isn’t just a box to check. It’s a critical part of satisfying the Care Obligation under Reg BI.
In a new NSCP Currents on Demand article, securities regulatory attorney Miriam Lefkowitz provides a detailed roadmap for broker-dealers to utilize when developing a reasonable, robust and defensible due diligence process, especially when recommending complex products and strategies.
From practical checklists to interpretive guidance, this article helps compliance professionals assess what “reasonable diligence, skill, and care” really looks like in the real world.
Key Insights Include:
- Why due diligence must go beyond collecting offering docs
- Why collecting more information is not always a better practice
- Who should be involved in the due diligence process
- How to benchmark products against reasonably available alternatives
- Examples of what to do when information is incomplete—or a manager is evasive
- How regulators view documentation (even if it’s not formally required)
- What resources and tools can support consistent analysis
- Whether you're building a due diligence program or refining your approach, this piece is a must-read for BD compliance teams.
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