Sponsored: What Integrated Due Diligence Means for Broker-Dealers and Reps

Less Time, Less Risk, More Business

Any broker-dealer or rep weighing a new tool asks the same questions. Will it save me time or money? Will it protect me? Will it help me do more business?

For private placements, a big factor in answering those questions is due diligence. A typical private placement memorandum, or PPM, can run anywhere from 150 to 400 pages, and Regulation Best Interest’s Care Obligation requires a rep to understand the potential risks, rewards, and costs before recommending an offering. Firms already spend real time and money meeting that standard. Where and how that work happens decides how efficiently a firm can put an offering to use.

What Fragmented Due Diligence Really Costs

At many firms, the process of conducting due diligence and subscribing an investor runs on separate tools. The PPM sits in an inbox or shared drive, third-party reports live somewhere else, training runs through a separate learning system, and the subscription is often completed offline.

That fragmentation carries three costs. Staff time goes to reconciling records across systems. Assembling and archiving the evidence that a rep understood an offering is a manual exercise. And subscriptions stall while someone confirms the paperwork and the diligence are complete. Because nothing in the process ties a subscription to that evidence, the firm carries the exposure.

FINRA’s 2025 Annual Regulatory Oversight Report lists “failure to evidence due diligence” among its private-placement exam findings – not only failing to perform it.

Solving the Problem: How It Works

1776ing puts a structured due diligence review and an offering-specific Reg BI competency test directly on each offering page. The review is built from the offering’s PPM with every answer quoted verbatim from the document. The Invest button stays locked until the rep has completed both the review and the test; the platform enforces the sequence rather than relying on an attestation. Once unlocked, the subscription continues within the same platform: subscription documents, signatures, principal approval, and post-investment documentation, all in one place.

For Broker-Dealers: Protect Your Firm, Oversee Your Reps, and Scale Your Operations

For principals, chief compliance officers, and OSJ supervisors, the payoff shows up in three places.

• Protection: Every subscription that reaches a principal already has a completed review and test behind it for that rep. The record is created as the work happens, time-stamped by rep and offering, and can be downloaded or emailed to the file. When an examiner asks how a rep came to understand an offering, the evidence already exists, supporting the firm’s reasonable investigation and Care Obligation responsibilities instead of being reconstructed after the fact.
• Savings: Due diligence, testing, and subscription share one system, so less staff time goes to reconciling tools or assembling files by hand from multiple sources.
• Growth: The same review structure and test format apply to every offering, so adding to the shelf doesn’t mean building a new review process each time.

All of this gives time and resources back to you and your reps to focus on distribution.

For Reps: More Time with Clients, Less Time Searching for Answers

For reps and advisers, the payoff is time back and confidence in every recommendation.

• Time saved: The PPM is organized into clear sections, with the full document still a click away. Reps get to what matters without digging through hundreds of pages for a single answer.
• Protection: A completed review and test sit in a time-stamped record for every offering a rep recommends. Because answers are quoted from the PPM, what a rep tells a client traces back to the document itself.
• More business: Once the due diligence is done, the path from recommendation to signed subscription runs through one platform, with no switching between systems. Time not spent chasing paperwork is time with clients, and a rep who understands an offering can bring it into the conversations where it is in the client’s best interest.

The Bottom Line

Due diligence is part of the job either way. When it sits on the same path as the subscription, it stops being overhead and starts working for the firm and the rep: fewer hours reconciling, a record that exists before anyone asks for it, and a shorter path from understanding an offering to recommending it and subscribing the investor.

To see how it works for yourself:

Book a demo or contact our team at support@1776ing.com

About 1776ing

1776ing builds technology for private markets that brings sponsors, broker-dealers, advisors and their clients together to discover, conduct due diligence on and invest in private offerings. Its platform, backed by a consulting and implementation team, supports offerings from marketing and education through subscription and investor relations.

This is sponsored content provided by 1776ing, a sponsor of AltsWire, and was published as part of its standard directory sponsorship package. AltsWire edited the article for style only. The views and claims expressed are those of 1776ing and have not been independently verified by AltsWire. Publication does not constitute an endorsement or recommendation by AltsWire of 1776ing, its platform, or any product or service described. This article is for informational purposes only and is not investment, legal, tax, or regulatory compliance advice. Broker-dealers and representatives should consult their own compliance and legal advisers about their regulatory obligations.

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