Frequently Asked Questions
See answers to frequently asked questions
- What is Financial Diligence Networks?
FDN is a private software network that allows asset managers to share due diligence information with accredited investors in a secure, controlled, and compliant way, while generating workflow efficiencies for both sides. Managers maintain profiles on the system to share qualitative and quantitative information and documents about their funds with individuals of their choosing. Managers can also use the network to connect with investors and receive reverse inquiry. The system allows managers to share information consistently with investors and record each interaction historically for compliance purposes.
- Who can see your documents and proprietary information on FDN?
Only users who have been specifically granted access by you to view this information. Just because a fund manager has a profile on FDN does not mean that users on FDN have access to that fund manager’s proprietary information. On the contrary, documents, historical AUM and returns, and other due diligence information are all behind a permission wall which the manager controls on a per-user basis. The manager can select which information a user can see on a product-by-product basis and can also set different transparency levels for prospects and investors.
- What manager information can be seen by anyone on the platform?
Very basic information:
• Firm Name
• General Contact Information
• Brief firm summary
• Main Point of Contact
• Location of Headquarters
• Senior Management biographies
• Names of Products, with very brief summary
• Most recent month’s AUM number for the firm and any products listed.
- Who has the ability to grant or remove access to users, upload documents, and edit the firm profile?
Any person designated by the firm as a profile administrator (there can be more than one). The firm may have other employee users linked to the firm profile who do not have this capability (called simply “employees”). Profile administrators can also invite employees to join the firm profile as users on FDN.
- Can Anyone Join FDN?
No. FDN is a private, invitation-only network available solely to accredited investors in the United States, non-U.S. investors in accordance with local law, and consultants, investment advisers, or other agents, acting solely on behalf of such investors. All users must agree to being such before they are able to join FDN. Users also agree to provide accurate information about themselves and to maintain the confidentiality of information they have access to.
- Are all FDN members Accredited Investors?
FDN is available solely for accredited investors in the United States, non-U.S. investors in accordance with local law, and consultants, investment advisers, or other agents, acting solely on behalf of such investors. Before users can to join FDN, they must agree to FDN’s Terms of Service attesting to the fact that they meet this standard. The Terms of Service are found here: https://secure.gofdn.com/pages/terms
- How can I determine if users are also qualified purchasers?
Users that represent qualified purchasers can self-identify as such on the system. Such users have a QP badge next to their name on their individual user profile. If you only want to share your information with QPs, you can check their profile for the QP badge before granting access, or contact them directly to verify, using their contact information, or send them a message through the site.
- Who performs suitability checks? How do I know that users on FDN are who they claim to be?
Before users are able to join FDN, they must first agree in the Terms of Service to provide accurate information about themselves. The Terms of Service are found here: https://secure.gofdn.com/pages/terms
Users can only join FDN if they have been invited by another user or by FDN. Users can only join a firm profile if they have been connected to the firm profile by the profile administrator at the firm or by FDN. Users can take actions on- and offline to connect with other users and develop their knowledge of each other (e.g., send messages, make phones calls, or meet in person). If you wish to have a background check performed on any user, you can click on the Background Check button on their user profile to order a report from NCO Financial Investigative Services. FDN reserves the right to suspend any user from the network for any reason.
- How do users join a firm profile on FDN?
Users can only be added to a firm profile by the profile administrator for the firm or by FDN. They can request to be added to the firm profile. Once a firm association has been created, a notification email is sent out to other employees on the firm profile on FDN.
- Is FDN LAMP Compliant?
Because access to the platform is restricted to a select group of users, via their username and password, who have been pre-qualified by agreeing to our Terms of Service, the posting of information by asset managers on the platform should not:
1. constitute a form of general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act of 1933,
2. constitute a public offering of securities for purposes of Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act of 1940, or
3. cause any unregistered non-US investment advisor to hold itself out generally to the public within the meaning of the Investment Advisers Act of 1940.
In addition, access to asset managers’ private information is controlled by the asset managers on a user by user basis, and asset managers may impose various additional restrictions on users.
However, FDN does not give legal advice and you may wish to review the analysis in the relevant SEC no-action letter with your counsel and/or compliance experts. http://www.sec.gov/ divisions/investment/noaction/1998/lamptech052998.pdf
- Does FDN help with AIFMD?
Asset managers can receive reverse inquiry from users globally on FDN. FDN records a complete audit trail of all interactions, including whether access to information was requested proactively by users. Asset managers can download this historical data for their firm.
Yes, found here: https://secure.gofdn.com/pages/privacy
- How does FDN let asset managers know when a user wants to learn more about their products?
Users can click an access request button to request access to information on one or more of the asset manager’s products based on a very brief product description. The profile administrator(s) at the asset management firm will receive an automatic email notification of this request and can choose to grant access, follow up for more information from the investor, or privately ignore the request.
- Do asset managers need to wait for an access request in order to grant access to a person to see their information?
No. Managers can invite users to join FDN to access their information. Managers can also search for users on FDN and proactively grant them access to see their information.
- How does a user know that they have been granted access by a manager to that manager’s information?
An automatic email notification is sent to the user.
- Can managers grant a user access to one product and not another?
Yes. Access is granted on an individual product basis. Once product access is granted to a user to at least one product, that user can also see information on the firm level.
- Can managers create different information access levels for prospects and investors?
- Can asset managers revoke information access from users to whom they had previously granted access?
Yes. When asset managers revoke access, the user does not receive an email notification that they no longer have access.
- Can asset managers see which permissioned users have clicked on their profile and opened their documents?
Yes. Asset managers can use the Insights feature on FDN for this purpose and download a CSV file showing the history of the opening of documents.
- Are all documents watermarked?
PDF documents (that are not locked or have extra security features added to them) are watermarked with the user’s name, time-stamped, and have a hidden tracking code.
- Can managers remove documents that they have uploaded to their profile?
Yes, uploaded documents can be removed for all users, although FDN keeps a private record of all historical changes to a profile over time on its secure servers for compliance reasons.
- Can permissioned users print or download my documents?
Users that have been granted access to manager documents by the asset manager can download and print those documents. PDF documents (that are not locked or have extra security features added to them) are watermarked with the user’s name, time-stamped, and have a hidden tracking code.
- Can permissioned users download manager historical returns and AUM?
Yes. Permissioned users can download historical returns and
- Can users who have been granted access to manager information share it with others?
Before they are able to join FDN, all users agree to maintain the confidentiality of information they have access to when they agree to the Terms of Service.
- Can users share passwords with other users?
In the Terms of Service, individual users agree not to share their user name and password with any third party for any purpose. Each user login is associated with a specific individual with a user profile.
- Does FDN agree to keep manager information confidential?
Yes. Confidentiality provisions are found in the standard FDN client contract.
- Are historical changes to my firm profile captured by FDN?
FDN records a complete historical audit trail of all interactions and profile changes.
- Does FDN support all file types (i.e., PDFs and Microsoft Office?
Yes, the site supports PDFs, Word documents, Excel files, PowerPoint files, etc., as well as audio and video files.
- Can users send messages on the system?
Yes, and all messages sent to a user on the system also flow through to the user’s email. The user can respond to the message via email. Compliance officers at firms can receive automatic copies of all messages sent to and from the firm’s users on the system if they wish.