• Nationwide Exchange Services Division is the only 1031 QI to Pass the Five Year Mark for SAS 70 Type II Audits
  • NESF has Defined the Most Extensive and Robust Audit Environment in the 1031 Industry
  • Achievement Raises the Bar in the 1031 Marketplace for More Transparency and Security

SAN JOSE, CA June 30, 2010 – NES Financial (NESF), a leading financial services provider for the banking industry and Fortune 500 companies, announced that Nationwide Exchange Services (NES), the company’s 1031 division, has successfully completed its fifth consecutive SAS 70 Type II audit. The company has obtained an unqualified opinion for the third-party service provider Type II audit based on Statement on Auditing Standards No. 70 (SAS 70).

NES, the nation’s leading provider of Internal Revenue Code Section 1031 Like-Kind Exchange services, is the only Qualified Intermediary (QI) to have achieved five consecutive SAS 70 Type II annual certifications. Though a small number of other QIs periodically conduct audits, NES defines the most extensive and robust audit environment in the industry. The SAS 70 Type II certification is part of a proven set of measures NESF has taken to protect its clients’ exchange funds and the integrity of exchange transactions.

Conducted by one of the nation’s leading CPA firms, the SAS 70 Type II certification establishes that a service organization has undergone an in-depth third party inspection and testing of their control objectives and activities. NES voluntarily meets the most stringent requirements in the industry, conforming to OCC and BSA third party vendor requirements for financial institutions and high standards of reporting and compliance. As the market leader, NES helps set a higher standard of transparency and funds security by adhering to the strictest security and operational paradigms in the industry.

“In recent years, too many consumers and businesses have lost funds due to poor practices of QIs,” said Michael Halloran, CEO of NES Financial, referring to the recent spate of major QI defalcations resulting from mismanagement of funds, fraud, and even theft. “This certification validates that we are delivering a bulletproof approach to addressing 1031 exchanges by providing the highest levels of transparency, security and compliance. Our continued market momentum and market share growth are evidence of the importance that our clients place on these benefits.”

As a result of its SAS 70 Type II certification and proven security and transparency measures, NES is uniquely qualified to serve the needs of Fortune 500 companies that must comply with the requirements of Section 404 of the Sarbanes-Oxley Act, the Bank Secrecy Act, Gramm-Leach-Bliley Act (privacy provisions), and other important financial regulatory statutes.