You may approve an investor's AI status for a specific transaction and extend that approval for subsequent transactions over a 12-month period. No need to repeat the approval process.
FAQ:
Q: Do I need to repeat Accredited Investor approval every time I encounter a particular Investor?
A: No, once you approve a given Accredited Investor, that approval will automatically be valid for 12 months unless certain circumstances change.
Q: When will the automatic 12 month approval be rescinded?
A: This approval will be rescinded if the Investor indicates a change to:
a) Accredited Investor Category
b) Spousal Status
c) or uploads new Accredited Supporting Documents
Q: I see an investment from an Accredited Investor, but i'm not asked to review their Accredited Status. Why?
A: Transactions from Accredited Investors that qualify under one of the other exemption types are instead filed under those other exemption types. This somewhat reduces the challenges of Report of Exempt Distribution filing.
Q: What if I still want to manually review each transaction for Accredited Status - that is, I don't want the 12 month approval?
A: Dealer partners have traditionally advocated for the simplicity of the automatic 12 month approval, knowing that this will be automatically rescinded if the Investor indicates a change. Please get in touch with us to request additional options for this feature.
Steps to Take:
1. Review an Investor's Accredited Status on the Transaction Ledger page by clicking within the "Accredited Status" column on an individual transaction
2. The "Accredited Status" window will pop up, where you can choose one of the following options:
a. Approve - Accredited Status will be approved for this transaction. Any transactions from this Investor within the next 12 months will automatically receive Accredited Status approval. This Automatic approval will be voided if the Investor indicates a change to either their Accredited Category or Spousal Status, or uploads new Supporting Documents.
b. Reject - Reject Accredited Status for this transaction and provide a reason to the Investor
c. Follow-Up - Request additional information from the Investor before deciding
d. Pending - Pending Dealer Representative Review
3. When reviewing past Approved Accredited transactions, you will be able to view details of the approval by again clicking the "Accredited Status" column on an individual transaction.
This view shows the Approver, Approval Date, and Validity Period of the Accredited Approval: