Non-accredited Investor
Non-accredited investor is a person who doesn’t meet the financial qualification thresholds listed above. Many non-accredited investors simply say they’re not accredited yet. Keep in mind, accreditation requirements are ultimately designed to protect investors from risk.
For Reg CF Non-accredited investors face strict investment limits based on their annual income or net worth. For investors with an annual income or net worth of less than $124,000, they are limited to investing the greater of $2,500 or 5% of their income/net worth. For those above this threshold, they can invest up to 10%, capped at $124,000 over 12 months.
There are exemptions from registration such as Regulation D, Rule 506(b) that do allow a limited number of non-accredited investors to participate in an offering.
Further, being non-accredited doesn’t have to stop you from making smart investment decisions and diversifying your portfolio. A good place to start is this guide to long term investments.
Related product: regulatory-compliance
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