Reg D/Reg A Escrow Services


There are a variety of reasons why one would choose to use an escrow account associated with Reg A and Reg D offerings. Primarily if you utilize a broker-dealer for a contingent offering, the Securities Exchange Act requires investor funds to be held an escrow account until the contingencies are satisfied.

Rules 10b-9 and 15c2-4 of the Securities Exchange Act of 1934 dictate the regulatory requirements surrounding how to hold investor funds and who is authorized to hold the funds while raising capital for such an offering. Escrow accounts are primarily used by issuers to assure investors of the viability of their business, even if there is no contractual contingency associated with an offering. Escrow accounts provide an extra level of protection for investors and issuers by allowing an authorized third party to hold investor funds safely while the offering is in progress.

Issuers can call funds from the investor and escrow the subscriptions while all necessary paperwork and compliance checks are conducted, including accreditation verification. In case of an unsuccessful offering, the escrow agent promptly returns funds to investors.

The entire escrow process is integrated with Eastern Point Trust’s patented technology services to simplify communication, fund flows, and recordkeeping.

We have streamlined the process with electronic documents and real-time reporting through our Trust Panel. Key benefits of working with Eastern Point Trust as escrow agent include our high touch customer service, real-time escrow reporting and visibility, and partnering with a company that has a 30-year track record and depth of expertise with escrow for private offerings.
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