Purchaser Qualification: Sophistication and Purchaser Representatives

What this video covers

• Why a non-accredited purchaser needs financial sophistication, and how borrowed expertise through a purchaser representative satisfies the rule
• What independence means: why affiliates, directors, officers, employees, and 10%-or-greater owners of the issuer are disqualified from serving as purchaser representatives
• The narrow family exceptions to independence, and why they stop at first cousins by blood, marriage, or adoption
• Why the purchaser's written acknowledgment of a purchaser representative must name that specific investment, and why blanket approvals for all future deals fail
• The two-year look-back period for written disclosure of material relationships and compensation between the representative (and its affiliates) and the issuer (and its affiliates)
• How the issuer's reasonable belief about sophistication must be formed immediately before the sale, not days or weeks earlier