Applying For a Private Placement Program

Applying for a Private Placement Program

READ THIS FIRST BEFORE COMPLETING APPLICATION DOCUMENTS

Thank you for your interest in becoming a client for a PPP trade program.

Summary:

Much like you would apply to a University to become accepted, then select the college under the University (the trader), once you have been cleared through Compliance/Due Diligence, participation in a trade program which is designed to generate profits to be used in funding a project is then discussed based on the program(s) running at the time you are ACCEPTED.

This is the critical first step that will create the open door to the trading environment. Because it can take up to 4 to 6 weeks from the start of the Application (KYC, POF, POL, etc) by the time you have been APPROVED, that particular program is most likely closed.

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STEP 1: Submission of properly completed Know Your Customer (KYC) set of documents with acceptable Proof of Funds.

STEP 2: Once the submission has been presented to the trader principal, the Compliance departments run background checks on the client individually and corporately. If they pass the due diligence by Compliance,

STEP 3: The client by that time is in direct communication with the trader’s principal or authorized.

STEP 4: The trader will review the programs that are running AT THE TIME OF APPROVAL TO TRADE. If it is acceptable to the Client, the trader will prepare a contract for trade which includes ALL terms and conditions of the program, including payout procedures, time frame, etc. At the same time an IMFPA will be drafted by the trader to cover non-principal intermediaries.

STEP 5: Once the contract is signed by both parties, the trade will be scheduled to start.

Background

Trade Programs are constantly changing, as they become filled and closed quickly. Rather than a client applying for a particular program (which likely will be gone by?the time the client passes compliance and is approved for trade. This causes grief when an applicant is trying to get into a particular program that may be running at the time of application, only for it to close prior to the client being accepted and approved. The intelligent way for a client to approach participation in a trade program is to first understand the admission process and then the program being available at the time of Approval by the trader’s compliance team.

Timelines

The initial processing for compliance can take, DEPENDING ON THE BANK WORKLOAD, up to 4 to 6 weeks for Due Diligence, Program Opportunity, and Approval of the client to trade.

It is very important to understand that PATIENCE while processing is essential. The banks and traders work at their own pace, and do not tolerate clients who set how long it will take. The short answer is, it will take as long as it take to clear Compliance.

Once a client is Accepted and a then-running program is selected, the rest of the process can move in about 1 to 2 weeks.

You should have received a blank template for the KYC, and a Checklist for completing it correctly. If not, please send a request to [email protected].

This is the new 2022 procedure. It will save time and grief on the part of the client by not being told at the end of the Compliance process and Acceptance process that the program they have applied for is closed. ?Once you are Approved, the trade program available at the time of Approval will be discussed.

This happens quite frequently, and a client who is focused on one particular program takes the risk of the program being closed by the time the client has been through the first steps of compliance.

Communication to the client once the application has been made is generally at this point principal-to-principal.

Why?

Every intermediary and client always want to know what the program is that they are applying for. However the first thing is to make certain the client is ready to enter a trade by contract once they have been approved. This cannot be skipped over. By first “Accepting and Approving” the client, they have been (figuratively speaking- “admitted to the University”, before a program can be selected that fits or comes close to the fit for the client.

Your intake officer will help explain this further if this is not understood.?