{"id":364,"date":"2014-03-13T12:11:12","date_gmt":"2014-03-13T17:11:12","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=364"},"modified":"2020-01-21T13:23:58","modified_gmt":"2020-01-21T17:23:58","slug":"verifying-accredited-investors","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/verifying-accredited-investors\/","title":{"rendered":"Protecting Investor Privacy While Verifying Accredited Investors"},"content":{"rendered":"
Regulation D of the Securities and Exchange Act of 1933 makes it possible to raise capital through the sale of shares, units etc. while verifying accredited investors without officially registering the offering with the SEC.\u00a0 Limited disclosure requirements make it easier to raise money in a private offering, and the private placement industry raises more capital on an annual basis than the stock market.<\/p>\n
Recently, the SEC lifted the ban on general solicitation and made it possible for companies to advertise their private offering using Rule 506(c).\u00a0 Simultaneously they also changed the requirements for verifying investors.\u00a0 Rule 506(c) says that you can advertise your offering as long as you only accept money from accredited investors.<\/p>\n
In the past, the SEC allowed investors to \u201cself-certify\u201d.\u00a0 They could check a box and sign a form saying that they were accredited investors.\u00a0 Per the changes to Rule 506, this is no longer an option.\u00a0 Now, the company receiving the funds must take \u201creasonable steps\u201d with verifying accredited investors.<\/p>\n
These reasonable steps may include:<\/p>\n
Understandably, these new guidelines are raising alarm bells for investors concerned about their privacy.\u00a0 Most investors do not relish the thought of exposing their entire financial picture to an unknown company in order to give them money.\u00a0 Fortunately, there are options you can offer investors that will guarantee their privacy.\u00a0 Third party verification sites are now available where you can verifying accredited investors can become certified and provide that certification document to any company they wish to invest in.\u00a0 You can also tie up with an attorney or CPA and refer your investors to them for the certification process.\u00a0 Give your investor’s peace of mind so that you can continue to cultivate the relationship and have a successful capital raise.<\/p>\n
Regulation D of the Securities and Exchange Act of 1933 makes it possible to raise capital through the sale of shares, units etc. while verifying accredited investors without officially registering the offering with the SEC.\u00a0 Limited disclosure requirements make it easier to raise money in a private offering, and the private placement industry raises more<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[63],"tags":[],"yoast_head":"\n