Head Resist

To introduce our group, we work with principals and other official representatives to help our clients engage in a private placement program / transaction.

To ensure that we have a successful transaction, we must first of all understand some of the things that can go wrong in a private transaction of this nature.  I will share some thoughts with you in this document in a hope that you and your investors can understand the reasoning and benefits in moving of funds to the transacting bank into a sole signatory account in the name of the client.

From our experience, and from those of successful individuals that we work with, more then 50% of transactions fall apart and fail after contract stage when the clients bank refuse to issue / confirm the blocking of funds to trigger the commencement of the transaction. This leaves a nasty feeling in the eyes of the investor and the people around him, all of whom are wondering if the transaction was real or a scam.

Often people talk about doing a bank to bank block or administrative hold at the clients bank to start a transaction. This is plausible, but I ask the question, for a first time investor, what response do you think that the client is going to get when he tells his bank officer that he needs his funds blocked for a PPP?

The final step was for the client to request from his bank, some from of ‘blocked funds’ confirmation. This could be one of several types that had been mutually agreed between the client, trade group and their ‘line of credit’ providers. We sometimes tend to forget that the client’s local bank does not understand the nature of this transaction and probably told him that the whole thing was impossible. By this time the client has probably seen several pages of information of the internet also saying that the whole business is illegal and untrue and meant that the client walks away from the transaction and his introducer.

One must make an effort to understand that the people constantly writing long messages on forums about PPP on the internet are people that have always and only worked through long broker chains promising extraordinary returns to their clients without moving funds and have never really met anyone that has ever completed a successful transaction.

We work with licensed trade groups that have absolutely no time to make websites or defend this market against these comments as they are more interested in helping individuals achieve their ‘project funding’ requirements.

To summarise, the client, the funds and the trade group might have all been verified, but the deal fell apart. We need to understand what went wrong. The answer is that they were working in an environment that was not conductive to a successful transaction with bank officials who do not understand the transaction. This will never work. Under these conditions, we will never engage in a transaction due to the obstacles / hindrances that we foresee.

From our experience, ‘movement of funds’ avoids all these problems. If the client understands / feels comfortable / is able to move funds into his own account at a top designated bank after directly meeting with backers and the asset manager then we have a successful transaction. This is a simple system which helps the client avoid any potential problems that he may experience at his home bank. In certain situations, or smaller amounts, the client may be invited to enter via moving funds directly to an account with the trade group to facilitate a successful transaction and avoid any delays.

We should also note, smaller transactions place most of the responsibility on the side of the client. Licensed Asset Managers of this scale do not want the difficulty trying to help the client build a stronger relationship with his home bank. they would much rather bring the client and his funds into an environment conducive for this type of transaction. For this to happen, the client must show a strong commitment that he is serious to work with an asset manager of this type / nature and that he is ready, willing and able to do what it takes to start a successful transaction. Moving funds to the trade bank and attending a meeting with the trader are two very important steps for the client to ensure and demonstrate that he is able to enter a transaction.

BENEFITS OF MOVING FUNDS: 

Places the funds into a bank where the trader has a strong relationship Avoids any problems associated with blocking of funds Brings the clients and his funds into an environment where the bank officers understand the nature of the transaction and will support the client. Shows the trader that the client is really committed to working with the trade group.

Finally, clients must realise that this business really is ‘invitation only’ and if the investor ever gets a real opportunity / invitation to work with a party that has closed transactions, they should try their utmost to learn and understand what these groups do, with the hope that they allow the client to enter into a private placement transaction with their group.

Honesty, transparency and professionalism are of utmost importance throughout the transaction.

For information on Private Placement Programs, Private Placement Investment, Private Placement Platform, PPP, MTN trading and MTN buy sell programs: visit www.sovereignsecurities.com

Whenever we are introduced to clients or groups who are submitting for participation in a private placement program for the first time, we find that they always have a burning anxiety to ask:

What are the returns?

In response most brokers (that probably have never successfully completed a transaction) start to talk about very high returns as an act of solicitation to entice the interest of the client. This is illegal. This is disliked by licensed asset managers and is only done by people that are inexperienced and have no personal track record. This is very dangerous and they probably have nothing to lose by behaving in this way as this might even be the first time that they are seeing a complete compliance package.

If you are ever in the situation that you are speaking with a party purported to be linked to a trade group, be highly cautious if they start telling you the returns prior to submission of documents and compliance approval. Please note:

Returns can only be discussed by licensed parties The returns are between principals and will not be disclosed to the brokers or on the open market Even historical figures can only be discussed after compliance as this is seen to be an act of solicitation

We normally present the opportunity to the client to start working with our group in a hope that we can contribute to the success of the long term goals of the client. We are all aware that the best things in life are built up steadily over time and not overnight.

One should note that there are several methods of transacting and different asset managers use their own preferred trading mechanisms. Clients should not ‘shop’ around for the highest ‘quoted return’; clients should focus on finding an asset management group which has:

Good reference from close associates A procedure that client in able to understand, accept and deliver comfortably An existing active programme will minimize delay of entry

Quite often what happens in this market sector is that brokers advertise procedure and returns that are not current or real. These attract the client to submit his details and the application is ‘shopped’ around the market to many parties. This has several detrimental effects, including the fact that the client is unhappy that he starts to receive calls and emails from a multitude of brokers who many never have performed for other clients. This causes distress and makes it difficult for the client to differentiate the real from the fake transactions.

Another problem which may occur is that the application package might be submitted to the same platform through two separate sources, in this scenario the platform may assume that the client is shopping around the market with multiple brokers and may refuse to work with the client. In turn, this causes further negativity, it:

Results in non-performance and causes a disbelief in the eyes of the client

Clients, as sophisticated investors, must understand each legitimate method of transacting and decide which one of these is most appropriate for their particular situation. Clients should not be bullied into working with large amounts, they should be able to start the transaction with an amount that they feel comfortable with.

Clients should decide on their chosen route in advance of this engagement as they have normally waited for years to meet a licensed asset management group. Please note that normally, if the client reaches contract stage and is not able to perform, that particular trade group will probably not deal with the client again.

In essence, clients should not focus or be dazzled by the dollar signs. One should focus on having a SAFE and SUCCESSFUL FIRST TRANSACTION.

For information on Private Placement Programs, Private Placement Investment, Private Placement Platform, PPP, MTN trading and MTN buy sell programs  visit www.sovereignsecurities.com

Suggested Terms

placement program – remote desktop private