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    Investor Accreditation USA

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    Dylan Schumacher
    The document discusses the investor status verification requirements for purchasing securities under Rule 506(c) of Regulation D. Issuers must verify that all investors are accredited by obtaining written confirmation from a registered broker-dealer, investment advisor, licensed attorney, or certified public accountant that the investor's status was verified. Being an accredited investor generally means having a net worth over $1 million or an income over $200,000 individually or $300,000 jointly. The verification requirement is important for issuer compliance and investors may face criminal liability for misrepresenting their status.

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    Investor Accreditation USA

    Uploaded by

    Dylan Schumacher
    68 views2 pages
    The document discusses the investor status verification requirements for purchasing securities under Rule 506(c) of Regulation D. Issuers must verify that all investors are accredited by obtaining written confirmation from a registered broker-dealer, investment advisor, licensed attorney, or certified public accountant that the investor's status was verified. Being an accredited investor generally means having a net worth over $1 million or an income over $200,000 individually or $300,000 jointly. The verification requirement is important for issuer compliance and investors may face criminal liability for misrepresenting their status.

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    The document discusses the investor status verification requirements for purchasing securities under Rule 506(c) of Regulation D. Issuers must verify that all investors are accredited by obtaining written confirmation from a registered broker-dealer, investment advisor, licensed attorney, or certified public accountant that the investor's status was verified. Being an accredited investor generally means having a net worth over $1 million or an income over $200,000 individually or $300,000 jointly. The verification requirement is important for issuer compliance and investors may face criminal liability for misrepresenting their status.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    68 views2 pages

    Investor Accreditation USA

    Uploaded by

    Dylan Schumacher
    The document discusses the investor status verification requirements for purchasing securities under Rule 506(c) of Regulation D. Issuers must verify that all investors are accredited by obtaining written confirmation from a registered broker-dealer, investment advisor, licensed attorney, or certified public accountant that the investor's status was verified. Being an accredited investor generally means having a net worth over $1 million or an income over $200,000 individually or $300,000 jointly. The verification requirement is important for issuer compliance and investors may face criminal liability for misrepresenting their status.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Investor​ ​Status​ ​Verification​ ​requirements​ ​to​ ​buy​ ​Securities

    United​ ​States​ ​Requirements 


    As​ ​of​ ​September​ ​23,​ ​2013,​ ​Issuers​ ​of​ ​securities​ ​offered​ ​pursuant​ ​to​ ​Rule​ ​506(c)​ ​of 
    Regulation​ ​D​ ​are​ ​required​ ​to​ ​verify​ ​that​ ​all​ ​investors​ ​in​ ​the​ ​offering​ ​qualify​ ​as​ ​Accredited 
    Investors.​ ​This​ ​verification​ ​requirement​ ​applies​ ​to​ ​all​ ​purchasers​ ​–​ ​individual​ ​investors 
    and​ ​entities. 
    An​ ​acceptable​ ​form​ ​of​ ​verification​ ​of​ ​Accredited​ ​Investor​ ​status​ ​is​ ​written​ ​confirmation 
    from​ ​one​ ​of​ ​the​ ​following​ ​persons​ ​or​ ​entities​ ​that​ ​the​ ​person​ ​or​ ​entity​ ​has​ ​taken 
    reasonable​ ​steps​ ​to​ ​verify​ ​that​ ​the​ ​purchaser​ ​is​ ​an​ ​Accredited​ ​Investor​ ​within​ ​the​ ​prior 
    three​ ​months​ ​and​ ​has​ ​determined​ ​that​ ​the​ ​purchaser​ ​is​ ​an​ ​Accredited​ ​Investor: 
    1. A​ ​Registered​ ​Broker-Dealer; 
    2. An​ ​Investment​ ​Advisor​ ​Registered​ ​with​ ​the​ ​Securities​ ​and​ ​Exchange​ ​Commission; 
    3. A​ ​Licensed​ ​Attorney;​ ​or 
    4. A​ ​Certified​ ​Public​ ​Accountant. 
     
    If​ ​qualification​ ​of​ ​an​ ​Accredited​ ​Investor​ ​is​ ​based​ ​on​ ​joint​ ​income​ ​or​ ​net​ ​worth​ ​with​ ​a 
    spouse,​ ​any​ ​certification​ ​will​ ​have​ ​to​ ​be​ ​provided​ ​both​ ​by​ ​the​ ​investor​ ​and​ ​by​ ​the 
    spouse. 
    The​ ​verification​ ​requirement​ ​presents​ ​potential​ ​criminal​ ​liability​ ​for​ ​investors​ ​who 
    misrepresent​ ​their​ ​status​ ​and​ ​is​ ​a​ ​very​ ​important​ ​part​ ​of​ ​compliance​ ​by​ ​issuers​ ​of 
    private​ ​securities.​ ​Investors​ ​are​ ​encouraged​ ​to​ ​treat​ ​such​ ​verification​ ​very​ ​seriously. 

       

     
     
    Investor​ ​Status​ ​Verification​ ​requirements​ ​to​ ​buy​ ​Securities
     

    Accredited​ ​Investor​ ​Qualifications 


    The​ ​federal​ ​securities​ ​laws​ ​define​ ​the​ ​term​ ​Accredited​ ​Investor​ ​as: 
    1. A​ ​natural​ ​person​ ​who​ ​has​ ​individual​ ​net​ ​worth,​ ​or​ ​joint​ ​net​ ​worth​ ​with​ ​the​ ​person’s 
    spouse,​ ​that​ ​exceeds​ ​$1​ ​million​ ​at​ ​the​ ​time​ ​of​ ​the​ ​purchase,​ ​excluding​ ​the​ ​value​ ​of 
    the​ ​primary​ ​residence​ ​of​ ​such​ ​person;​ ​or 
    2. A​ ​natural​ ​person​ ​with​ ​income​ ​exceeding​ ​$200,000​ ​in​ ​each​ ​of​ ​the​ ​two​ ​most​ ​recent 
    years​ ​or​ ​joint​ ​income​ ​with​ ​a​ ​spouse​ ​exceeding​ ​$300,000​ ​for​ ​those​ ​years​ ​and​ ​a 
    reasonable​ ​expectation​ ​of​ ​the​ ​same​ ​income​ ​level​ ​in​ ​the​ ​current​ ​year;​ ​or 
    3. A​ ​bank,​ ​insurance​ ​company,​ ​registered​ ​investment​ ​company,​ ​business​ ​development 
    company,​ ​or​ ​small​ ​business​ ​investment​ ​company;​ ​or 
    4. An​ ​employee​ ​benefit​ ​plan,​ ​within​ ​the​ ​meaning​ ​of​ ​the​ ​Employee​ ​Retirement​ ​Income 
    Security​ ​Act,​ ​if​ ​a​ ​bank,​ ​insurance​ ​company,​ ​or​ ​registered​ ​investment​ ​adviser​ ​makes 
    the​ ​investment​ ​decisions,​ ​or​ ​if​ ​the​ ​plan​ ​has​ ​total​ ​assets​ ​in​ ​excess​ ​of​ ​$5​ ​million;​ ​or 
    5. A​ ​charitable​ ​organization,​ ​corporation,​ ​or​ ​partnership​ ​with​ ​assets​ ​exceeding​ ​$5 
    million;​ ​or 
    6. A​ ​director,​ ​executive​ ​officer,​ ​or​ ​general​ ​partner​ ​of​ ​the​ ​company​ ​selling​ ​the​ ​securities; 
    or 
    7. A​ ​business​ ​in​ ​which​ ​all​ ​the​ ​equity​ ​owners​ ​are​ ​Accredited​ ​Investors;​ ​or 
    8. A​ ​trust​ ​with​ ​assets​ ​in​ ​excess​ ​of​ ​$5​ ​million,​ ​not​ ​formed​ ​to​ ​acquire​ ​the​ ​securities 
    offered,​ ​whose​ ​purchases​ ​a​ ​sophisticated​ ​person​ ​makes. 

     
     

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