New Venture To Fuse Due Diligence, Education, Litigation Avoidance For Financial Professionals

Online, May 27, 2010 (Newswire.com) - Aurora, CO-based FA RiskMgmt (http://www.fariskmgmt.com) and Minneapolis, MN-based FactRight, LLC (http://www.factright.com) announce today their new joint venture. The two firms will be working together to help independent broker dealers and investment advisors successfully manage the risks inherent in incorporating private placement and other non-traded investments into their practices.

FA RiskMgmt - formerly FA Legal - has provided its members with innovative litigation mitigation services since it was founded in 1989. The firm focuses on litigation avoidance and recognizes that broker dealers and financial advisors must take proactive steps to mitigate the risks they assume in their day-to-day activities. By offering its members education, information, expert resources, and referrals through its network, FA RiskMgmt has improved the documentation and practices of thousands of financial advisors, and thus successfully spread litigation costs and improved various arbitration outcomes.

Founded in 2006, FactRight, LLC leads the Reg. D marketplace in due diligence and risk management services. FactRight specializes in helping independent broker dealers meet FINRA's dynamic regulatory requirements for private placement due diligence. Additionally, FactRight serves as a consolidated source of information on available Reg. D offerings and other alternative investments. Its clients range from the smallest independent firms to broker dealers with over 10,000 registered representatives.

In coming together, the two firms will work to provide financial professionals the risk management tools they need to grow successful businesses apart from the fear of litigation. According to FA RiskMgmt's Vice President of Sales and Marketing, Chris Lenius, the new joint venture with FactRight "will bring together the experience and expertise of two of the industry's top risk management providers." The two firms seek to fuse the management of investment risks with the management of operational risks undertaken by all financial professionals. "We intend to make brokers' lives easier as they expand their practices," said Lenius.

Innovation and the unobstructed flow of information are goals the two firms are pursuing together. "At FactRight, our mission has always been to improve transparency in the Reg. D space," said Tony Chereso, the President of FactRight. "The new tools we will bring to the market in partnership with FA RiskMgmt will help raise the bar and improve industry standards. Ultimately, this should benefit investors most of all," he added.

The firms are expected to announce their first new product in mid-July of this year.