Accredited Investor / Qualified Purchaser Checker

What is an Accredited Investor?

An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access by satisfying at least one requirement regarding their income, net worth, asset size, governance status, or professional experience.

The Financial Criteria:
In the United States, under Rule 501 of Regulation D of the Securities Act of 1933, the SEC defines an accredited investor as anyone who:
1. Has an earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
2. Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person's primary residence).

The SEC recently updated the definition to include individuals with certain professional certifications, designations, or credentials, such as Series 7, Series 65, and Series 82 licenses. Being an accredited investor is critical because it unlocks access to private equity, hedge funds, venture capital, and other private placements that are not available to the general public. These assets can provide superior returns and diversification, but also carry elevated risk profiles.

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