QIB Certification Letters, Subscription Agreements, and Investor Questionnaires

What this video covers

• The three non-negotiable requirements for a QIB certification letter: an executive officer signature, the exact dollar amount of securities owned and invested on a discretionary basis, and a specific date on or since the close of the purchaser's most recent fiscal year
• Why merely asserting QIB status is worthless on exam day, and what a valid letter must actually state
• The standard industry practice for subscription agreements: investor signs and submits funding, then the issuer, general partner, or manager accepts, commonly by countersignature
• Why signing and funding a subscription agreement does not by itself complete the sale, and why the issuer can still reject a subscription in whole or in part
• The investor questionnaire's sole purpose as a fact-gathering instrument for eligibility and background screening
• Why evaluating the customer's investment profile is a separate step that happens after the questionnaire, not the questionnaire itself
• The reasonable reliance standard that lets a firm accept a signed QIB certification without independently verifying every element