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
Related pages
- Regulations
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- Managing Escrow Logistics
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- filing and disclosure automation
- form 1-A
- global investor participation
- investment limits for non-accredited investors
- investor tracking and notifications
- market demand and pricing
- ongoing reporting
- real-time transaction processing
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- Reg CF
- Campaigns conducation
- Disclosure of Risks
- Form C-AR
- Form C
- Investment Caps
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- Reg D
- Blue Sky Laws
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- Ongoing Reporting Obligations
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- Protecting Non-Accredited Investors
- Reg D 504
- Reg D 506 b
- Reg D 506(c)
- advanced valuation models
- complexity of alternative assets
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- multiple jurisdictional regulations
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- secondary market
- settlement time
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- valuation of alternative assets