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Due Diligence & Reporting Services

magnify-moneyCompleting due diligence is a bit like jumping through hoops with a whip cracking. Every holder of unclaimed property is compelled by disparate state statutes to follow meticulous rules governing the search for owners of property. The process can be extremely complex and some states are more demanding than others. 

The state of California, for example, not only requires holders to conduct due diligence, but also requires a pre-escheat list so the state can perform its own due diligence. The California unclaimed property office publishes properties with names, asking owners to contact holders directly, which invites criminals to pose as owners. 

It’s a challenge to handle those calls in addition to calls from real owners who might believe the due diligence letters they received are advertisements. Such misunderstandings sometimes cause owners to become angry and difficult to serve. If a company has a large amount of unclaimed property, management of the calls alone can weigh on staff.

Some companies attempt to complete due diligence in-house, but it’s a big job. Not only does assigned staff have to keep up with state statutes, maintain meticulous records and manage a multitude of calls, the reporting cycle demands huge blocks of staff time, taking personnel away from more important tasks. Any deviation from state mandated due diligence or reporting rules can open an organization to risk of audit and penalties. 

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Let us take on your due diligence burdens

On average, a majority (estimated at 60%) of owner addresses on record are outdated or invalid. MarketSphere is able to perform an advanced due diligence services that can reduce unclaimed property liability and potentially reduce penalties and interest for potentially late reporting of items. The advanced due diligence services include:

♦ A comprehensive search based on SSN/FEIN or name & address of owners that matches records with a comprehensive database (NCOA, SS Death Master Index, Major Phone/Utility Company Addresses)

♦ Additional outreach via calling or email campaign

♦ Mailing and tracking of responses

These services can be particularly helpful to holders who must comply with SEC 17 AD-17 Mandated Searches. For more information, download the Lost Securityholder Searches resource paper.

In contrast with your in-house staff who have varied financial responsibilities, MarketSphere’s compliance team provides a singular focus on due diligence. Over the years, we’ve established proven policies and processes, as well as a robust training process, to transform professional team members into the perfect escheatment silent partners. You make the decisions with our experts’ assistance, and we do the legwork so your staff can focus on more important competencies. 

We’ll help you set up policies and processes to find owners before property hits dormancy status, which will keep your due diligence process to a minimum and save time and money. We know how to produce letters that not only fulfill state statutes, but follow proven professional standards that minimize the potential for fraud or misunderstandings by owners. Again, this ultimately saves you time and money.

Unclaimed property

MarketSphere’s consultative approach allows you to benefit from our extensive experience with hundreds of clients and every aspect of unclaimed property and escheatment functions. Our goal is to become a seamless arm of your own staff, conducting accurate due diligence and reducing the odds of audit, so unclaimed property becomes a nearly invisible concern in your company, comfortably taking place behind the scenes where it belongs.

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We Can Help You:

  • Verify dormancy status of appropriate properties and owners to determine who to add to due diligence processes
  • Prepare and send due diligence letters, using your securely exported records, in compliance with all state rules for letter format, content and timing
  • Handle owner responses, so you can avoid time-consuming back-and-forth communication with sometimes irate owners who misunderstand due diligence letters
  • Represent your company professionally, using our decades of experience to handle customer interaction property and reactivate customers when possible
  • Manage potentially fraudulent claims from criminals posing as owners by conduction thorough, professional ownership certification processes

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Read the blog: 5 U.P. processes that benefit other departments

Are you over-complying? Under-complying?

Are you reporting and escheating too many dollars? Or are you reporting too little and risking huge penalties? Take two minutes to take the JustRight Compliance® quiz to find out!

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We were particularly pleased we were able to achieve such measurable success during the busiest time of the year.

Director, Financial Process and Systems Support a large Accounting, Tax & Bookkeeping firm