The Broker Deal in EB-5 Investments is Crucial
The EB-5 Immigrant Investor Program is a unique pathway to U.S. residency, offering investors the opportunity to obtain a green card in exchange for making a qualifying investment in a U.S. job-creating project. However, given its complexity and regulatory oversight, EB-5 is not just an immigration program—it is also a securities offering. This is where having a broker-dealer becomes a game-changer for investors, ensuring compliance, due diligence, and transparency throughout the investment process.
In a recent discussion, Pete Calabrese, CEO of CanAm Investor Services, and Min Wu, CanAm’s Global Head of Sales, explored why CanAm’s in-house broker-dealer sets the firm apart and provides unparalleled protection and benefits for EB-5 investors.
Why a Broker-Dealer is Essential in EB-5
“EB-5 is a very complicated and unique security, but it is still a security,” explained Pete Calabrese. “With that comes compliance and regulations that need to be followed to ensure everything is done properly.”
The 2022 EB-5 Reform and Integrity Act (RIA) introduced stringent due diligence and compliance requirements for regional centers, adding an extra layer of security for investors. These reforms necessitate heightened oversight in financial and legal processes, making the role of a broker-dealer indispensable.
CanAm was ahead of the curve, becoming the first regional center to implement a broker-dealer in 2012. Recognizing the importance of investor protections and regulatory compliance, CanAm made a strategic decision to establish its own broker-dealer instead of relying on third-party services. “We wanted to set the standard for compliance and transparency in the industry instead of just trying to meet the standard,” said Min Wu.
CanAm’s Leadership in Compliance and Investor Protection
One of the most significant advantages of CanAm’s in-house broker-dealer is quality control and consistency. Unlike firms that outsource compliance and investor onboarding to external broker-dealers, CanAm ensures every step of the investment process meets its rigorous standards. “We wanted the consistency in how we onboard an investor, how we select our investments, and how we manage those investments through the broker-dealer,” Min Wu emphasized.
This hands-on approach allows CanAm to:
- Conduct extensive due diligence on each investment to ensure financial soundness and compliance.
- Maintain direct oversight of the investor onboarding process, reducing risk and enhancing transparency.
- Ensure that all SEC and FINRA filings are completed correctly and in a timely manner.
- Adhere to best practices and regulatory requirements, reinforcing investor confidence.
How the Broker-Dealer Benefits EB-5 Investors
The addition of a broker-dealer into the EB-5 process is not just about meeting regulatory requirements—it is about protecting investors and ensuring they receive clear, accurate, and honest information about their investments. “With the RIA, regional centers are now required to undergo audits and provide detailed disclosures to investors. The fact that CanAm has already been doing this for over a decade is something that resonates with investors,” Min Wu noted.
A broker-dealer ensures:
- Regulatory Compliance – Investors can rest assured that all securities laws are being followed, reducing potential legal risks.
- Transparent Reporting – Investors receive complete, clear, and accurate information regarding their investments.
- Stringent Due Diligence – Investment opportunities are carefully vetted to mitigate financial and project-related risks.
- Investor Protections – Having a regulated broker-dealer means investors have added layers of protection under U.S. securities laws.
CanAm’s Commitment to Investor Success
Over the years, CanAm has solidified its reputation as an industry leader by prioritizing investor security, transparency, and project quality. “CanAm has built its reputation on trust, and that trust is reinforced by our commitment to best practices and investor-first principles,” said Calabrese.
This commitment has led to:
- Over $3.5 billion in EB-5 capital raised
- Over 9,000 investors and their family members receiving permanent green cards
- A 100% project approval rate
CanAm’s in-house broker-dealer is not just a feature—it is a cornerstone of the firm’s strategy to safeguard investors and deliver on their immigration and financial goals.
Final Thoughts: Why Investors Choose CanAm
In a landscape where transparency, compliance, and risk management are critical, CanAm’s decision to maintain an in-house broker-dealer demonstrates its industry leadership. “There are a lot of things that other people might outsource, but with something as important as securities regulation, we found that it is best handled by our own team,” Calabrese stated.
The EB-5 process is already complex, but with CanAm, investors can navigate it with confidence, knowing they are working with a firm that prioritizes their protection and success at every step. For those considering an EB-5 investment, CanAm’s experience, transparency, and rigorous compliance measures make it the trusted choice.
For more information on CanAm’s EB-5 investment opportunities and how our in-house broker-dealer benefits investors, contact our team today.
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