What license does one need to provide EB-5 brokerage services in the U.S.? - EB5Investors.com

What license does one need to provide EB-5 brokerage services in the U.S.?

I am a real estate broker in south Florida. A restaurant chain wants me to offer to my international investors the opportunity to open new locations under a 49/51 joint venture (49 percent investor and 51 percent restaurant chain) through EB-5 visa investment. Investors put down the money and the restaurant chain operates the businesses. What licenses should I have in order to be able to offer this kind of investment and get a commission or referral fee for it? Does this restaurant need to be affiliated with a regional center in order to do so?

Answers

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

It takes a village to make these work. First, you need a regional center to qualify the jobs. Second, you need to be compliant with SEC and FINRA rules, both with the offering and with the deal structure. Hire an experience lawyer to help you quarterback the deal.

Daniel A Zeft

Daniel A Zeft

Immigration Attorneys
Answered on

You need an appropriate broker dealer license. You should consult with a securities attorney who is experienced with EB-5 matters. The restaurant does not need to be affiliated with a regional center in this case.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

If you need to operate as an investment adviser selling securities, you may need a license with the federal U.S. Securities and Exchange Commission (SEC) or your state''s securities regulatory agency. Since you may be recommending investment advice and receiving special compensation, you will be considered an investment adviser representative (IAR) and required to register. Also, you are required to offer reasonable suitable recommendations. Depending on the level of your services, consider consulting a host of sources such as both state and federal securities regulating agencies for latest information. Although rules keep changing, for most states and SEC, an IAR is required to hold at least Series 65 license administered by the Financial Industry Regulatory Authority (FINRA) on behalf of the North American Securities Administrators Association. Advisably, the restaurant operators should seriously consider working with both a securities attorney and a regional center.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

In order to represent the EB-5 project vis a vis potential investors, you would normally need to be a registered broker/dealer. The interest in an EB-5 project is viewed to be a security and thus the selling of an interest in an EB-5 project is covered by U.S. securities laws. The restaurant does not need to be affiliated with a regional center, although at times there are significant advantages in doing so and, depending upon the amount of investment sought under the EB-5 program, you would have more flexibility in attracting capital if the project was marketed under an EB-5 regional center. The center would allow you to count not only direct jobs, but also indirect jobs based upon appropriate economic studies. Also, the EB-5 regional center might have more experience in marketing the project abroad.

Russell C Weigel, III

Russell C Weigel, III

Securities Attorneys
Answered on

You probably need at least a series 82 license (private securities offerings representative). The restaurant, the issuer, does not need to be affiliated with a regional center to offer securities, whether for an EB-5 program or not.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

You likely need a broker/dealer license to receive commissions (transaction-based compensation). The EB-5 offerings would be exempt from SEC registration if offered to accredited investors only (Reg D exemption) and/or to overseas investors (Reg S exemption). You should consult with an attorney who is an expert in SEC matters. The restaurant does not need to be affiliated with a regional center unless it will rely on indirect job creation. Direct EB-5 projects (those that rely only on direct job creation) typically are not affiliated with an USCIS-designated regional center.

Lynne Feldman

Lynne Feldman

Immigration Attorneys
Answered on

Check with the SEC.

Mark AM Catam, Esq

Mark AM Catam, Esq

Immigration Attorneys
Answered on

You will need an experienced EB-5 lawyer to advise you further.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

Immigration Attorneys
Answered on

No RC affiliation is required. You need to be a licensed broker/dealer.

DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.