Due Dilligence
“Due diligence” denotes the process of investigating a business opportunity.
In outsourcing, the standard of care for such investigation depends on whether the services are regulated, or the use of the information relating to the services will create any statutory liability. The standard of care for investigation is much higher for broker-dealers, who have fiduciary duties to investors, than for ordinary corporate transactions.
Investigation of possible outsourcing operations requires an extensive checklist of considerations. For further information on available checklists and procedures, please contact us.