Accredited Investor Definition
Chapters in this video
- 0:00 Why accredited investors gate every Reg D safe harbor
- 1:41 The $1M net-worth path: primary-residence exclusion and debt traps
- 3:16 Two-year look-back income test and the averaging trap
- 4:15 Professional licenses, knowledgeable employees, and insider automatic qualification
- 5:02 Entity thresholds: assets, assets under management, or investments
- 6:18 Anti-abuse rule and the all-accredited-owners exception
- 7:11 Trust triple test: assets, formation purpose, sophisticated director
- 7:45 Rapid-fire exam recap
What this video covers
- Why the $1 million net-worth threshold excludes the primary residence but counts vacation homes and rental properties, and how home debt gets treated
- The two-year look-back income test at $200,000 individual or $300,000 joint, and why averaging one high year and one low year fails
- How the professional-license path works for Series 7, Series 65, and Series 82 holders, and why active employment is not required
- Why knowledgeable employees, directors, executive officers, and general partners get automatic accredited status as natural persons
- The $5 million thresholds for entities: total assets, assets under management, or investments, depending on entity type
- Why the anti-abuse rule blocks entities formed for the specific purpose of acquiring securities, and the massive exception when all owners are already accredited
- How the trust triple test combines the $5 million asset floor, the anti-abuse formation rule, and the sophisticated-person investment directive
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 79 course also includes adaptive practice questions and spaced-repetition flashcards.