Accredited Investor Certification

10 Replies

Good Afternoon All.  I was wondering if anyone can shed light on the most efficient method of proving accredited investor status, from an investors perspective.  I know that some of the crowdfunding sites are using 3rd party verification.  Would it be better to use a CPA/Attorney?  It seems that putting together bank/broker statements, property records, private placement agreements as proof to each syndication operator or crowdfunding website that you wish to invest with may become a cumbersome process.

Any suggestions would be greatly appreciated.

@David Calme good afternoon David. CPA/FA/Attorney is usually path of least resistance.  Next step is we verify in house and collect the data needed or use our third party vendor via our platform. At the end of the day we give the investor all the information and options and let them decide their preference.

@David Calme many 506(b) syndications use "self certification" of accreditation status.

I believe for 506(c), the verification onus is on the syndicator.

Some 3rd party verification sites require the investor to "re verify" every 3-4 months, which can be a pain.

@David Calme it depends on which SEC reg you are offering under. As @Percy N. said, 506(b) allows the investor to self identify as an accredited investor or not. Typically you will include an accreditation questionnaire with your subscription agreement that will take them through the process.

Cheers!

Simple letter from your CPA may suffice depending on the sponsor. Some may require you to use a 3rd party company

@David Calme   Agree with all of the above. @Ivan Barratt @Percy N. and @Abel Sng

506(b) = Investor self-identification through a questionnaire

506(c) = Third party verification.  CPA/FA/Attorney can provide this.  Otherwise there are 3rd party vendors that the syndicators work with that make the process simple and easy online.

@David Calme or you can also send in your last two years returns if you are an accredited investor by income but if you are an accredited by net worth
Then the above all are good.

Thank you, @Kay Kay Singh .

Since first starting this thread, I actually did go through the process of verifying by net worth with a third party service.  By uploading the required information and supporting documentation via the service's web based interface, the process of verification was very fast and painless.  I received a response within a few hours.  The service allowed me to set up a profile and save the verification, should the need arise to verify again with another sponsor.

@David Calme can you name the company here that you used so that others reading this thread may be able to use if they want to get verified.

I certainly can @Kay Kay Singh .  The verification service is called VerifyInvestor.com.  The operator who needed my verification set up the process (and paid the fee, I presume).  However, I believe that you can set yourself up with the service and have them verify you for a fee.

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