Federal law requires an independent verification of wealth to qualify as an accredited investor. Regulation are written to require issuers of private securities, particularly sold under Rule 506, offer disclosures. This applies to the events tied to a company seeking funding.
There are several offerings being used by online funding platforms, broker/dealers, private investment intermediaries, angel groups and other accredited investors helps ensure compliance with Regulation D, Rule 506(d).
Bad Actor provisions under U.S. Securities and Exchange Commission (SEC) Regulation D, Rule 506 (d). Under the rule, certain disqualifying events must be monitored and disclosed in order to offer securities in compliance with the safe harbor for Regulation D, Rules 506 (b) and 506 (c). We have a separate page to learn more about some of the legal implications and laws governing the space.
Companies raising money through certain private placements must take reasonable steps to prove their investors are accredited. There are serious consequences for failing to do so. Using VerifyInvestor.com constitutes taking “reasonable steps” and shields companies from the potential risks of noncompliance, including enforcement action and the possibility of having to return funds to disgruntled investors.
The company was co-founded by JL and JT Law. They provide a fast, easy, and cost-effective method of compliance.
Simplify Compliance- EarlyIQ streamlines the process for all constituents involved in promoting, executing, and issuing securities under regulation in the United States.
- Business entity verification
- Positive online identity verification of all applicants
- National criminal records search
- Patriot Act records search through the OFAC database
- Other regulatory infractions search
They also offer an electronic deal room specifically for regulation D offerings, termed Room 506 with pricing details in the screenshot with the basic, premium and power packages.