For a Regulation D offering, following SEC Rule 506(c), all investors must be accredited. This generally means you have sufficient net worth or income to absorb losses to your investment. Investors are required to verify their accredited investor status.
A fast and simple way to submit proof of your eligibility is to have an accountant/lawyer/broker-dealer/investment advisor complete the form linked here. If you have them complete this, you will be able to upload it to your account after submitting the payment.
Here is a link from the SEC for more information about the 506(c) offering.
An individual accredited investor is someone that has:
- Has a net worth higher than $1,000,000 either individually or with your spouse, not including your primary residence
- An annual income higher than $200,000 for individuals or $300,000 as joint income in the last 2 years and expect to earn more than that amount in this given year.
- An individual has good standing in the Series 7, Series 65, or the Series 82
An accredited investor as an entity is:
- A trust is considered to be an accredited investor if its assets exceed $5 million, not created to purchase securities and directed by a sophisticated person.
- An entity is an accredited investor if its investment exceeds $5 million, not created to purchase securities.
- An entity by which all equity owners are accredited investors.
For more information about accredited investor status please click here.
For more information about accreditation documentation please click here.