Accreditation Tracking & Verification: Stay SEC Compliant

If you're raising capital under SEC Regulation D, you need to verify that your investors are accredited. Under 506(c) — which allows general solicitation — verification isn't optional, and "they told me they qualified" doesn't count.

deeltrack tracks accreditation status, verification methods, expiry dates, and compliance gaps per investor — with automated alerts so you never accept capital from an investor whose accreditation has lapsed.

Why Accreditation Tracking Matters

The consequences of accepting capital from a non-accredited investor in a 506(c) offering are severe:

• Rescission rights — the investor can demand their money back
• SEC enforcement — potential fines and sanctions
• Fund-level impact — one non-accredited investor can jeopardize the entire exemption
• Reputation — nothing kills future fundraising faster than compliance failures

For 506(b) offerings, up to 35 non-accredited investors are allowed — but you still need to track who's accredited and who isn't, because the disclosure requirements differ.

Verification Methods

deeltrack tracks which verification method was used for each investor, per SEC Rule 506(c) requirements:

• Income verification — tax returns showing $200K+ individual ($300K+ joint) for the past two years with reasonable expectation of the same
• Net worth verification — bank/brokerage statements showing $1M+ net worth (excluding primary residence)
• Professional certification — written confirmation from a CPA, attorney, registered broker-dealer, or SEC-registered investment adviser
• Existing investment verification — letter from another 506(c) issuer confirming prior verification

Expiry Tracking

Accreditation verification isn't permanent. The SEC doesn't specify an exact expiry period, but industry practice treats verification as valid for 90 days to one year. deeltrack tracks the expiry date for each investor and automatically alerts you when:

• 30 days before expiry — yellow warning in Pulse, time to reach out for re-verification
• On expiry — status changes to "expired," flagged as critical in Pulse
• Post-expiry — the investor profile shows a red badge, visible anywhere they appear

This proactive approach means you never discover an expired accreditation when the investor is trying to wire money for your next deal — you catch it months in advance.

LP Self-Certification Portal

For initial onboarding, investors can self-certify their accreditation status through the LP portal:

• Select their qualification method (income, net worth, professional cert)
• Provide a legal attestation
• Status is set to "verified" with a 90-day expiry

This is appropriate for 506(b) offerings where self-certification is sufficient. For 506(c), you'd supplement this with proper third-party verification and update the investor's record in deeltrack.

Compliance Dashboard

The Accreditation page gives you a portfolio-wide view:

• How many investors are verified, pending, or expired
• Which investors need re-verification soon
• Which deals have investors with expired accreditation
• Quick links to update each investor's status

This is the view you pull up before a fundraise or when your attorney asks "Are all your investors properly verified?" The answer should always be knowable in 5 seconds.

Pulse Integration

Accreditation issues surface automatically in the Pulse dashboard:

• Critical: "James Hartwell — accreditation expired 45 days ago"
• Warning: "Sarah Chen — accreditation expiring in 12 days"
• Info: "Marcus Williams — accreditation verified but no expiry date set"

Each finding links directly to the investor profile where you can update the status. No hunting through records.