SEC Makes EB-5 Program Top Priority for Review


Summary: The phenomenal growth and expansion of the EB-5 investment immigration program has caused SEC and FINRA to review the program in light of instances where federal oversight has been in the industry. Investors should know that EB-5 Worldwide works together with NMS Capital Advisors to meet all legal requirements and ensure that due diligence is carried out for every investment case.

January 14, 2016

The Securities and Exchange Commission (SEC) announced on January 11th that it will make reviewing the EB-5 Immigrant Investor program one of its top priorities for 2016 compliance examinations. The EB-5 program has undergone phenomenal growth and expansion in recent years, contributing more than $4 billion to the U.S. economy in FY2015 alone. The SEC and the Financial Industry Regulatory Authority (FINRA) have noted this growth and have raised concerns about the lack of federal oversight and participation in the EB-5 industry.

The SEC announced that they will review the EB-5 program “…to evaluate whether legal requirements are being met in the areas of due diligence, disclosure, and suitability.” EB-5 regional centers are advised to ensure that they are meeting all relevant disclosure, exemption, registration and due diligence requirements, particularly compliance with respect to the payment of commissions and fees.

EB-5 WorldWide and its affiliated regional centers, Oriental Dolphins and American National Immigration and Education Center, Inc. (AMNIEC), are committed to maintaining industry best-practices for all of their EB-5 projects. The firm utilizes leading securities and immigration attorneys as well as the industry’s top economic consultants.

EB-5 WorldWide has engaged NMS Capital Advisors as the broker-dealer of record for all of its EB-5 offerings. NMS Capital Advisors will ensure that EB-5 WorldWide projects are fully compliant with SEC requirements, and will conduct an independent due diligence review of all offerings in accordance with FINRA regulations. NMS Capital Advisors is an SEC registered broker-dealer and is a member of FINRA.

Source: Scott Barnard, Stephen Mansfield, Jenny Matthew Walters – JDSupra Business Advisor