Becoming an Accredited Investor

A Simple Guide to Accreditation Verification

All applications will be reviewed within a single business day! Please see our Becoming an Accredited Investor page for commonly asked questions. You may also reach out to Parallel’s Market help desk at help@parallelmarkets.com at any time.

Some Helpful Hints

You may have a lawyer, CPA or SEC-registered investment advisor attest as to your accreditation status in lieu of providing documentation. Simply enter in their contact information, and we will handle the rest.

For the net worth test, the credit report is an SEC requirement. W have to make a determination as to your net worth – that is, assets less liabilities as listed on a credit report from a national reporting agency.

All accreditation letters are valid for 90 days per SEC rules. For income-based verifications, we may be able to automatically issue a new letter after 90 days so long as you provide necessary representations.

SEC rules surrounding investor accreditation are intended to help protect investors by verifying an investor’s baseline qualifications for surrounding investments and risks associated with investing.

Federal regulations require registration with the SEC prior to the sale of securities to investors, which include filing substantial documentation for review by the SEC and state securities agencies. However, there are certain exemptions to these regulations.

One exemption is provided by Regulation D, which allows securities to be offered to “accredited investors” in private offerings.

The definition of “accredited investor” can be found in Regulation D under the Securities Act of 1933. There are several different ways to be qualified as an accredited investor. These include:

  • Individuals with a pre-tax income exceeding $200,000 annually ($300,000 per couple) with the expectation of that continuing in the next year;
  • Individuals having a net worth of more than $1 million, excluding the value of a primary residence;
  • Individuals holding certain professional certifications, designations, and licenses that are active and in good standing (FINRA Series 7, Series 82, Series 65 holders);
  • Entities owning more than $5,000,000 in “investments” (as defined in the Investment Company Act of 1940), not formed for the specific purpose of acquiring the subject securities;
  • Entities in which all equity owners are accredited; and
  • Trusts with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the subject securities and whose purchase is directed by a “sophisticated person” as defined in Regulation D.

For the full definition of “accredited investor” please see 17 CFR § 230.501(a).

No. Only DiversyFund’s Premier Offerings require the investor to be accredited. Premier Offerings are open only to accredited investors and are designated with a Premier Banner.

All other DiversyFund Growth Offerings are available to non-accredited as well as accredited investors.

DiversyFund uses Parallel Markets, a third-party service provider, to verify your accredited status. We will walk you through the process on our app or website, and it is completely free to you.

What you need to provide to prove your accreditation depends on the manner in which you intend to invest (individually or through an entity or trust). Parallel Markets will provide a list of the required documents for your specific situation.

Premier offerings by DiversyFund require investors to be accredited and will be differentiated from Growth offerings by a banner. After you submit your offer, we will immediately ask you to get accredited and DiversyFund will send you to Parallel Markets to complete the verification process.

DiversyFund uses Parallel Markets, a third-party service provider, which can be accessed via your Notification Center.

Please reference this article: Parallel Markets Accreditation FAQ

If you have any questions about the process or required documentation, you may contact Parallel Markets directly by emailing help@parallelmarkets.com

No, you must use the Parallel Markets process for investing on the DiversyFund platform. Don’t worry, it’s free for investors.

No, DiversyFund cannot verify your accreditation without using Parallel Markets. The Parallel Markets process is a free and completely secure option for verification.

We understand there are reasons you might want to do this, such as to position yourself for offerings that might have tight subscription timelines. At this time we are unable to verify your accreditation until you submit an offer.

In most cases, investors are asked to supply copies of their W-2s or tax returns to verify annual income, and/or account balance statements to verify net worth, but additional requirements may vary depending on the complexity of the investor’s financial situation.

We suggest reaching out to Parallel Markets (they will answer questions about the specific documentation required) by emailing help@parallelmarkets.com for more information surrounding your specific situation.