{"id":423,"date":"2014-05-15T08:26:55","date_gmt":"2014-05-15T13:26:55","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=423"},"modified":"2020-01-21T17:24:08","modified_gmt":"2020-01-21T21:24:08","slug":"verify-accredited-investors","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/verify-accredited-investors\/","title":{"rendered":"How to Verify Accredited Investors and Stay in Compliance"},"content":{"rendered":"
If you are raising money through a private placement<\/a>, you will need to verify whether or not interested investors are Accredited Investors.\u00a0 How you structure your private offering will determine whether or not all of your investors need to be accredited.\u00a0 For example, if you use Reg D Rule 504 or 505 you can accept a limited number of non-accredited investors.\u00a0 If you issue the offering under Rule 506(b), your investors must be either sophisticated or accredited.\u00a0 Under Rule 506(c) you can work with accredited investors only.\u00a0 In order to stay in compliance, you must obtain and keep information on your investors that attests to their accreditation status.<\/p>\n Reg D Rule 504 and Rule 505<\/strong><\/p>\n A limited number of non-accredited investors may participate in your offering.\u00a0 They still need to be given all of the same disclosures as accredited investors and you need to maintain investor information on everyone, including:<\/p>\n Verifying accredited investors for Rule 504 and Rule 505 is fairly simple.\u00a0 These forms should be sufficient for staying in compliance.\u00a0 For further information or tips, contact your securities attorney.<\/p>\n Rule 506<\/strong><\/p>\n Under Rule 506, you are not allowed to accept investment dollars from non-accredited investors.\u00a0 They must be either \u201csophisticated\u201d or accredited.\u00a0 Sophisticated means that they must have sufficient financial knowledge to make the decision of whether or not to invest, even though they do not have the capital to do so.\u00a0 In order to document this, adjust the personal information form to include a section for their investor history and why they are a sophisticated investor.\u00a0 In addition, you will need the following:<\/p>\n Keep all of this information on file for the duration of their investment.<\/p>\n If you are raising money through a private placement, you will need to verify whether or not interested investors are Accredited Investors.\u00a0 How you structure your private offering will determine whether or not all of your investors need to be accredited.\u00a0 For example, if you use Reg D Rule 504 or 505 you can accept<\/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":"\nHere is what you need to know about how to verify accredited investors and stay in compliance:<\/h3>\n
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For more information please visit our mother site at<\/b> Salesleads.tv<\/b><\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"