On December 18, 2019, the Securities and Exchange Commission released a proposed amendment to the definition of an “accredited investor” that would broaden the categories of qualifying persons and entities. The new categories are based on, among other things, professional knowledge, experience and/or certifications.
Accredited investor status is important because, under U.S. securities laws, accredited investors may participate in investment opportunities that are generally unavailable to the wider public, including investments in private companies and funds. Parallel Markets has put together a regulatory update to help you understand the impact this amendment may have on your business.
If you are still doing these accreditation checks in-house or using a third party service provider, now is the time to switch over to Parallel and let us handle that for you!
Note — this regulatory update is provided for educational and informational purposes only and is not intended and should not be construed as legal or tax advice.
About Parallel Markets
Parallel Markets is a software company developing the tools to bring liquidity to private investments. Leveraging decades of private market experience, Parallel Markets is building technology from the perspective of actual issuers, employees and investors for use by actual issuers, employees and investors. Securely and accurately asserting identity online is a core piece of the private market’s infrastructure, and Parallel Markets believes this will be critically important in developing a future with minimal friction between investor and investment. The Parallel Passport is the tool Parallel Markets developed to provide a universal and portable identity solution for investors online. Follow us on Twitter, Facebook or LinkedIn.