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The 'due diligence' consists of getting the investor to fill in and sign a form affirming that they meet the criteria. No evidence is required. I know because
by mattclarkdotnet 5y ago
The 'due diligence' consists of getting the investor to fill in and sign a form affirming that they meet the criteria. No evidence is required. I know because I did exactly this just last year to invest in a New York based business.
- dataflow 5y ago> No evidence is required. So what though? We're not arguing over how simple or onerous the due diligence process is. Whatever it is, whether it's as simple as just checking a box or as difficult as walking on the moon, it is something that needs to happen before you are "accredited". Households that don't go through that process aren't accredited, even if they're worth a trillion dollars. It's as simple as that.
- thereisnospork 5y ago>Households that don't go through that process aren't accredited >(a) Accredited investor. Accredited investor shall mean any person who comes within any of the following categories, <etc.> Persons that meet the definition of an 'accredited investor' per 17 CFR § 230.501 are accredited. Attestations, diligence, etc. are irrelevant to that fact as defined by law. There is nothing that needs to happen above and beyond the criteria as spelled out. Have 999,999$ net worth? not accredited. Find a dollar bill on the street? Accredited. Spend 1$ on a coffee (ha..)? No longer accredited.
- dataflow 5y agoWell if you define accredited investor to include someone who has neither been accredited by anybody nor actually investing in anything then I have no idea. That doesn't strike me as a reasonable definition but who knows.