Accredited Investor: Quick Guide to SEC Rules
Who qualifies, how verification works, and why it matters for private offerings.
Qualification Criteria
Individuals generally qualify via income ($200k single / $300k joint for 2 years) or net worth (>$1MM excluding primary residence). Certain licenses also qualify (Series 7/65/82).
Verification
Third‑party verification is standard for Rule 506(c) offerings and may require documentation (W‑2s, tax returns, CPA/attorney letter).
Implications
Accreditation governs access to advertised private placements and is designed to protect investors participating in higher‑risk, illiquid securities.