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."
Title: Oregon Accredited Investor Qualification and Verification Requirements for Reg D, Rule 506© Offerings Introduction: Oregon's Accredited Investor Qualification and Verification Requirements for Reg D, Rule 506(c) offerings ensure that investments made through these offerings comply with federal and state securities regulations. In Oregon, there are specific criteria and verification methods that must be met in order to qualify as an accredited investor. This article will delve into the details of these requirements, highlighting any variations or additional qualifications that exist in Oregon. 1. Oregon Accredited Investor Qualification Requirements: To qualify as an accredited investor in Oregon, individuals or entities must meet certain criteria, which typically include: a) Income-based qualification: An individual must have an annual income exceeding $200,000 (or $300,000 jointly with their spouse) for the prior two years, with the expectation of maintaining such income in the current year. Alternatively, they must have a net worth exceeding $1 million, either alone or jointly with their spouse, excluding their primary residence. b) Professional designation: Certain professional designations, such as certified public accountants (CPA's), chartered financial analysts (CFA), or licensed attorneys, could also qualify as accredited investors in Oregon. 2. Oregon Accredited Investor Verification Requirements: To ensure compliance with securities regulations, issuers must take reasonable steps to verify that investors meet the accredited investor qualifications. Oregon follows the verification requirements set by the Securities and Exchange Commission (SEC), which include: a) Income verification: Issuers may verify an investor's income by reviewing relevant tax documents (e.g., W-2s, 1099s, or tax returns) for the two most recent years, along with obtaining a written representation from the investor regarding their expected income for the current year. b) Net worth verification: For verifying an investor's net worth, issuers may consider reviewing financial statements, credit reports, property appraisals, or other relevant documents. Additionally, investors may provide a written representation of their net worth. c) Third-party verification: Oregon allows third-party verification if the issuer obtains written confirmation from a registered broker-dealer, investment adviser, CPA, or attorney acting independently to verify the investor's accredited status. 3. Additional Oregon-specific requirements: While Oregon primarily follows the SEC's guidelines for accreditation qualification and verification, there may be additional state-specific requirements. However, at present, there are no additional accreditation or verification requirements specific to Oregon. Issuers must adhere to the federal standards outlined in Rule 506(c) of Regulation D. Conclusion: Complying with Oregon's Accredited Investor Qualification and Verification Requirements for Reg D, Rule 506(c) offerings is crucial for issuers seeking to raise capital. Understanding the criteria for accreditation qualification and implementing proper verification measures are essential for conducting legal and compliant investment offerings in the state. By adhering to these requirements, issuers can confidently offer securities to accredited investors while minimizing regulatory risks.
