Basically certain non-conventional or unregulated funds and investment vehicles state that they require potential investors to be “accredited investors” before being able to invest.
I am aware of the requirements needed to be one (income level, net worth or certain qualifications). However, it is not very clear if I actually need to do something in order to get such status, or if this is something that needs to be demonstrated individually to whoever requires it.
I have also noticed sometimes all that is needed is a self-certification that I am an accredited investor (without them actually checking). Assuming someone lies that he or she is an accredited investor and proceeds with the investment, what is the legal situation here? Is it the investor who is liable? Or the company/fund for not doing due diligence? Or is there any liability at all?
Finally, does this even apply at all to non-US persons (who intend to invest in US funds/companies that are US-based and require accredited status)? Or is it just something that Americans need to be concerned about?
Submitted May 07, 2021 at 10:19PM by LorryWaraLorry https://ift.tt/2R3YRvV
