To become an accredited investor the (SEC) requires certain wealth, income or knowledge requirements. The investor must fall into one of three categories. Firms selling unregistered securities must put investors through their own screening process to determine if investors can be considered an accredited investor.
The Verifying Individual or Entity should take reasonable steps to verify and determined that an Investor is an "accredited investor" as such term is defined in Rule 501 of the Securities Act, and hereby provides written confirmation. This letter serves to help the Entity determine status, take Investor statements regarding information, and waiver of claims."
New Hampshire Accredited Investor Qualification and Verification Requirements for Reg D, Rule 506© Offerings In New Hampshire, to participate in a Reg D, Rule 506(c) offering as an accredited investor, individuals or entities need to meet certain qualification and verification requirements. This ensures compliance with securities regulations and provides investor protection. The New Hampshire Securities Bureau, the regulatory authority overseeing investment activities in the state, outlines the following requirements: 1. Income-based Accredited Investor Qualification: Individuals may qualify as accredited investors if their annual income exceeds a specified threshold. As of 2021, the income requirement is set at $200,000 for an individual or $300,000 for a married couple filing jointly. This income level should be maintained in the most recent two years, with a reasonable expectation of meeting the threshold in the current year. 2. Net Worth-based Accredited Investor Qualification: Individuals or married couples with a net worth exceeding $1 million, excluding their primary residence, are also considered accredited investors in New Hampshire. Net worth should be calculated by subtracting liabilities from the fair market value of assets. 3. Entity-based Accredited Investor Qualification: Certain entities, such as corporations, partnerships, trusts, and other organizations, can qualify as accredited investors if they meet specific criteria. These include having assets exceeding $5 million, not being formed solely for the purpose of making the investment, or being an entity owned entirely by accredited investors. Verification Requirements: New Hampshire requires issuers or offering participants to take reasonable steps to verify an investor's accredited status. These verification methods aim to ensure that investors genuinely meet the accredited investor standards. Several verification methods may be used: 1. Income Documentation: Investors can provide tax returns, W-2 forms, or other income statements that demonstrate the individual meets the income-based qualification. Investors may need to provide documentation for the past two to three years. 2. Net Worth Documentation: To substantiate net worth-based qualification, investors can provide bank statements, brokerage statements, appraisals of assets, or other relevant documentation. The documentation should verify that the individual's net worth exceeds $1 million, excluding their primary residence. 3. Confirmation by a Third Party: Verification can be achieved through a written confirmation by a registered broker-dealer, investment adviser, licensed attorney, or certified public accountant, stating that they have taken reasonable steps to verify the investor's accredited status within the last three months and have determined the individual's eligibility. It is important to note that these requirements and verification methods focus on individual and entity eligibility within the state of New Hampshire. Investors should consult legal counsel or relevant securities professionals for accurate and up-to-date information regarding accredited investor qualification and verification requirements. Different Types of New Hampshire Accredited Investor Qualification and Verification Requirements for Reg D, Rule 506© Offerings: The types of New Hampshire accredited investor qualification and verification requirements outlined above generally cover most situations where individuals or entities seek to participate in a Reg D, Rule 506(c) offering. However, it is crucial to understand that specific circumstances and additional regulations or interpretations may affect the qualification and verification process. This is why investors and issuers are advised to consult qualified professionals for specific guidance tailored to their unique situations and offerings.
