GLBA News

Nationwide Exchange Services (NES) Increases Fidelity Bond to 55 Million Dollars

(May 04, 2007)-- Nationwide Exchange Services (NES) announced that is has increased its fidelity bond to $55 million per exchange transaction. Fidelity bonding exists to insure exchange transactions against corporate and individual theft, malfeasance, and dishonest acts of employees, partners or owners. When combined with NES’ industry leading processes, compliance and security, company customers and partners are assured to receive the highest level of service and security available in the 1031 industry.

NES has clearly established the best practices of Qualified Intermediaries across the country. For this reason, more leading banks, independent title and real estate companies, major law and accounting firms, have selected NES to be their preferred provider for 1031 exchanges. This growing list of best-of-class companies includes, Royal Bank of Scotland, Citizens Bank, Charter One Bank, PNC Bank, National City Bank, Cole Taylor Bank, Banco Popular, RGS Fountainhead Title, Commerce Title, Mercury Title, Monarch Title and many more making NES the leading choice of professional service firms and corporations for 1031 exchanges.

NES provides customers large and small with an industry-leading set of 1031 Exchange products and services, the highest level of 1031 expertise, and an unmatched level of regulatory and business compliance. Additionally, customers receive 24/7 transaction visibility, immediate transaction turnaround, and the highest level of funds security with all exchange proceeds held in US financial institutions maintaining 100% daily liquidity of exchangor assets. NES business practices and operating procedures ensure compliance with the latest IRS regulations, Banking Secrecy Act, Gramm Leach Bliley Privacy Act, and USA Patriot Act. Furthermore, NES is fully compliant with vendor control guidelines set forth within Sarbanes Oxley Section 404 which is required for public companies with 1031 transactions that have significant balance sheet implications.

Attesting to the high level of operating standards, NES has been awarded an unqualified SAS 70 Type II certification after an extensive independent audit of its infrastructure, business process and procedures for facilitating tax-deferred, like-kind exchanges according to the provisions of Section 1031 of the Internal Revenue Service Code. SAS 70 is the nationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA).

“In addition to the increase in our Fidelity Bond, we also maintain stringent controls and financial practices. For example; exchanger funds are held in US financial institutions, are fully liquid, and any movement or disbursement of exchanger proceeds requires the signature of the individual exchanger. The company’s many banking partners adhere to these same policies and procedures. We want to ensure that our clients feel safe when they do an exchange transaction with NES,” said Michael Halloran, NES President & CEO. “A new standard and customer expectation has emerged in the 1031 marketplace. Customers both large corporations and individual investors now require a higher level of expertise, service, transparency, and security on their 1031 exchanges.”

NES also delivers value-add services and support to the company’s preferred partners that compliment the professional services they provide their clients during an exchange transaction. Value-add capabilities include substantial resources in marketing, training, and personnel that ensure the NES partner’s ability to maximize the 1031 opportunity for the benefit of their customers and organization.

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