{"id":2086,"date":"2025-06-20T10:14:00","date_gmt":"2025-06-20T14:14:00","guid":{"rendered":"https:\/\/waltercounsel.com\/?p=2086"},"modified":"2025-08-22T17:48:54","modified_gmt":"2025-08-22T21:48:54","slug":"no-action-letter-verification-methods-for-accredited-investors","status":"publish","type":"post","link":"https:\/\/waltercounsel.com\/?p=2086","title":{"rendered":"No-Action Letter: Verification Methods for Accredited Investors"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The SEC&#8217;s Division of Corporation Finance has issued a no-action letter addressing verification methods for accredited investors under Rule 506(c) of Regulation D.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key Points:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-thumbnail\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/waltercounsel.com\/defiant\/wp-content\/uploads\/2025\/06\/Seal_of_the_United_States_Securities_and_Exchange_Commission-1-150x150.jpg\" alt=\"\" class=\"wp-image-2194\" srcset=\"https:\/\/waltercounsel.com\/wp-content\/uploads\/2025\/06\/Seal_of_the_United_States_Securities_and_Exchange_Commission-1-150x150.jpg 150w, https:\/\/waltercounsel.com\/wp-content\/uploads\/2025\/06\/Seal_of_the_United_States_Securities_and_Exchange_Commission-1-300x300.jpg 300w, https:\/\/waltercounsel.com\/wp-content\/uploads\/2025\/06\/Seal_of_the_United_States_Securities_and_Exchange_Commission-1.jpg 600w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">The Division concurred that issuers can take reasonable steps to verify accredited investor status by requiring minimum investment amounts when combined with specific written representations from purchasers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The SEC previously noted that high minimum investment requirements, absent contrary information, may allow issuers to take fewer or no additional verification steps if the investment isn&#8217;t financed by third parties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this verification approach to be valid, purchasers must provide written representations regarding their accreditation status under applicable provisions of Rule 501 and confirmation that their investment isn&#8217;t financed by third parties specifically for this purpose.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, the issuer must have no actual knowledge contradicting these representations.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"72\" height=\"72\" src=\"https:\/\/waltercounsel.com\/defiant\/wp-content\/uploads\/2024\/12\/image-1.png\" alt=\"\" class=\"wp-image-2877\"\/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">The Division emphasized that verification remains an objective determination based on the specific facts and circumstances of each purchaser and transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This no-action letter provides important clarification for issuers conducting Rule 506(c) offerings, potentially simplifying the verification process while maintaining investor protections.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC&#8217;s Division of Corporation Finance has issued a no-action letter addressing verification methods for accredited investors under Rule 506(c) of Regulation D. Key Points: The Division concurred that issuers can take reasonable steps to verify accredited investor status by requiring minimum investment amounts when combined with specific written representations from purchasers. The SEC previously &#8230; <a title=\"No-Action Letter: Verification Methods for Accredited Investors\" class=\"read-more\" href=\"https:\/\/waltercounsel.com\/?p=2086\" aria-label=\"Read more about No-Action Letter: Verification Methods for Accredited Investors\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":2877,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,6],"tags":[22],"class_list":["post-2086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financing","category-securities","tag-reg-d"],"_links":{"self":[{"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/posts\/2086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2086"}],"version-history":[{"count":5,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/posts\/2086\/revisions"}],"predecessor-version":[{"id":3589,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/posts\/2086\/revisions\/3589"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/media\/2877"}],"wp:attachment":[{"href":"https:\/\/waltercounsel.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}