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SEC Provides Guidance on Accredited Investor Verification

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Dear Friends,

The SEC has issued guidance on accredited investor verification methods for managers engaging in a general solicitation.  Specifically, the SEC narrowed its list of non-exclusive safe harbor verification methods as follows:

  • Income: (a) If tax documents reflecting the purchaser’s income for the two most recent years are not yet available, the issuer could rely on IRS forms for the two most recent available years and certain written representations regarding the missing year; and (b) generally tax documents from foreign jurisdictions cannot be used to verify income.
  • Net Worth: (a) Documentation establishing net worth must be dated within three months of the sale of the securities; and (b) the issuer must review a consumer report from a U.S. reporting agency.

Please click here for a link to the SEC’s guidance. Please feel free to contact us with any questions at (212) 867- 0200 or email us at info@counselworksllc.com .

Thank you,


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CounselWorks is a strategic business and regulatory consulting firm, that provides project-based consulting and manages compliance and regulatory programs for hedge funds, private equity firms, investment companies, broker-dealers and investment banks.
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