For a Regulation D offering under SEC Rule 506(c), all investors must be accredited. As the company using this exemption, you are required to take reasonable steps to check accredited investor status and can conduct this verification through the platform automatically, without manual involvement on your behalf (provided you have enabled this functionality as part of your deal). Once the investor has completed the document upload, the verification process will be initiated.
If an investor has NOT provided the required documents to begin their Accreditation review, the portal will automatically email them requesting this, on a daily basis.
When administering a 506(c) deal, it is important to keep in mind:
- Accreditation begins when the investor, sign, funds or has funds pending and uploads the necessary documents for 506(c) accreditation;
- Countersignature should not be enabled until the investor has been verified as accredited (see below);
- You can check the accreditation status of any investor by viewing their profile page (see below), but for confidentiality, deal administrators will not be able to access any of the investor’s accreditation documents;
- If documents are requested, the verifier will reach out to the investor through email to confirm what documentation is required.
The various verification states and how they appear on DealMaker:
Not Yet Approved:
New Documents Requested:
Approved: