Glass Box provides legal and compliance services for banks, broker dealers and trust companies that accept deposits and/or transact in Heightened Risk Securities. Heightened Risk Securities are defined by Glass Box as securities acquired by individual investors, family offices, and hedge funds in private transactions and then introduced into the public market at the time of sale.
Some examples of Heightened Risk Securities include:
- Securities Acquired in Secondary Market Transactions. These securities are held by individual investors, family offices, and hedge funds who have purchased positions from prior shareholders in private secondary market transactions.
- Securities Acquired for Services Rendered. These securities are typically held by employees or other independent contractors -such as attorneys, investment bankers, and specialty advisers – after having been acquired for services rendered to public companies.
- Securities Acquired in a Loan Transaction. These securities are typically held by lenders that have had to enforce a default provision or convert on a promissory note in which stock in a public company was used as collateral.
As part of Glass Box’s suite of legal and compliance services for financial institutions that transact in Heightened Risk Securities, Glass Box can provide written supervisory procedures, data management solutions, and ongoing legal representation in relation to regulatory inquiries and audit requests.