REGULATORY OVERSIGHT

Committed to Transparency, Regulation, and Investor Protection

At Great Point Capital and Sound Tract Advisors, we understand that trust is the foundation of any successful investment relationship. That’s why we operate under the strict oversight of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to ensure compliance with all industry regulations designed to protect investors.

Every investment opportunity we present undergoes rigorous due diligence to align with regulatory standards and investor interests. Additionally, eligible accounts may be covered by Securities Investor Protection Corporation (SIPC) insurance, providing limited protection in the unlikely event of broker-dealer failure.

As a registered representative, I am committed to upholding the highest ethical and professional standards, ensuring that every recommendation is made with your best interests in mind. You can verify my credentials and regulatory standing at FINRA BrokerCheck. (let’s create a hyperlink, see below)

Your financial security is our priority. If you have any questions about our regulatory compliance or investment approach, please don’t hesitate to reach out.

How are the activities of securities firms and their employees monitored and regulated?

The top of the food chain in this regard is the SEC, or Securities Exchange Commission.  The Securities and Exchange Commission (SEC) oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud.

How are the rules of the SEC implemented?  Answer: that is the job of Finra (Financial Industry Regulatory Authority)

FINRA is a self-regulatory organization for member broker-dealers that is responsible under federal law for supervising our member firms. Since the 1930s, under the oversight of the Securities and Exchange Commission (SEC), they have been charged with things like:

Writing and enforcing rules that govern the activities of member firms and their representatives

Examining member firms to ensure compliance with federal law and FINRA’s rules

Identifying manipulation and other misconduct by monitoring billions of daily market events and leveraging innovative technology

Removing bad actors from the brokerage industry

How does FINRA regulate Great Point Capital’s activities?

Great Point Capital, like other broker-dealers and investment advisors, complies with SEC regulations by adhering to rules and guidelines established by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). 

Specifically, Great Point Capital’s compliance with SEC regulations involves:

• Maintaining Net Capital Requirements:

The firm is subject to the SEC Uniform Net Capital Rule, requiring it to maintain a minimum level of net capital to ensure financial stability and protect investors. 

• Recordkeeping and Surveillance:

The company has policies and procedures to maintain business-related records, including electronic communications, and complies with relevant recordkeeping provisions. They employ measures to monitor and archive communications, ensuring compliance with SEC regulations. 

• Employee Training and Compliance:

Great Point Capital has procedures for employee training and compliance, including annual self-attestations to ensure adherence to the firm’s policies and procedures. 

• Compliance with FINRA Rules:

As a member of FINRA, Great Point Capital complies with its rules and regulations, including those related to best interest standards, advertising, and other areas. 

• Supervision and Control:

The firm has a Chief Compliance Officer responsible for ensuring compliance with relevant regulations and overseeing the firm’s compliance program. 

• Disclosure and Transparency:

Great Point Capital is required to disclose important information to investors and adhere to transparency requirements in its operations and communications. 

Enforcement and Oversight:

• SEC and FINRA Enforcement:

The SEC and FINRA have the authority to investigate and enforce compliance with regulations, including through inspections, examinations, and investigations. 

• FINRA Membership:

Great Point Capital’s membership in FINRA subjects it to FINRA’s rules and regulations, including those related to best interest standards, advertising, and other areas. 

In summary, Great Point Capital complies with SEC regulations by adhering to rules and guidelines, maintaining appropriate records, ensuring employee training and compliance, and implementing policies and procedures to ensure adherence to its obligations. 

How can I ensure that the broker I’m working with, Jim Whitesides from Great Point Capital meets all Finra standards?  Answer: by using Finra’s Broker Check

What does Broker Check do?

BrokerCheck helps you make informed choices about brokers and brokerage firms-and provides easy access to investment adviser information.  BrokerCheck tells you instantly whether a person or firm is registered, as required by law, to sell securities (stocks, bonds, mutual funds and more), offer investment advice or both.  BrokerCheck gives you a snapshot of a broker’s employment history, regulatory actions, and investment-related licensing information, arbitrations and complaints.

The Broker Check website:

https://brokercheck.finra.org/search/genericsearch/grid

Are there any resources where I can learn about “Alternative Investments” such as the ones I’ve discussed with Jim Whitesides from Great Point Capital?   Answer:  Yes! 

Start with the Great Point Capital website:

https://www.greatpointcapital.com/alternative-investments-research

DST history, application and comparison to Tenancy in Common (TIC)

https://connect.janover.co/blog/guide-to-delaware-statutory-trusts

What Due Diligence does Great Point Capital do on each investment vehicle before Jim can discuss that vehicle with an investor?

Great Point Capital conducts thorough due diligence on alternative investments to assess their potential and mitigate risks for their clients. Their due diligence process involves a multi-faceted approach, including: evaluating investment opportunities, conducting detailed financial modeling and analysis, performing extensive company and industry research, and reviewing the track record and experience of the investment sponsor. 

Specifically, Great Point Capital’s due diligence team:

• Curates sponsors and specific deals and products in the alternative investment space:

They filter through a wide range of options to identify the most promising opportunities. 

• Evaluates investment opportunities:

They analyze the potential risks and returns of each investment, considering factors like market trends, industry dynamics, and competitive landscape. 

• Conducts detailed financial modeling and analysis:

They build financial models to project the potential performance of investments, assess their valuations, and understand their cash flow characteristics. 

• Performs extensive company and industry research:

They delve into the background of the underlying companies and the broader industry context to gain a comprehensive understanding of the investment opportunity. 

• Reviews the track record and experience of the investment sponsor:

They examine the sponsor’s past performance, investment strategy, and management team to assess their capabilities and track record. 

• Manages all due-diligence data:

They maintain a centralized repository of due diligence data, ensuring efficient access and analysis of information related to both private and public offerings. 

In essence, Great Point Capital’s due diligence process aims to identify and assess high-quality alternative investment opportunities, while mitigating potential risks and maximizing returns for their clients. 

Discover Why 1031 and DST Are Worth Exploring 📚 Stay informed and dive deeper by reading articles from reputable sources.