What's needed to become an Accredited Investor (legal paperwork)?

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'I can consider them to be accredited investors if they say they are.'

True but for audit purposes have them sign some document....no need to peek into their personal tax filings or asset statements. If investor is hell bent on lying then they can lie very far and even manufacture fake statements...how far can/should the RIA go to make sure it is all correct. It is the business of money management, not private investigation.

 

[Eldredge]

Quote from toc:

'I can consider them to be accredited investors if they say they are.'

True but for audit purposes have them sign some document....no need to peek into their personal tax filings or asset statements. If investor is hell bent on lying then they can lie very far and even manufacture fake statements...how far can/should the RIA go to make sure it is all correct. It is the business of money management, not private investigation.

Right, that is what I paid the securities lawyer for. He prepared the documents stating net worth, income, etc. for them to sign (along with some other pertinent documents for the transactions involved). He felt comfortable that once the docs were filled out and signed I could treat the investors as acredited investors. I fully agree that everything should be in writing.