How to test Accredited Investor Verification
To test the accredited investor verification process in our sandbox environment, the document that is uploaded through the “uploadVerificationDocument” method must have a specific document file name in order to test certain workflows. Our system scans the file name of the most recently uploaded verification file to see if it matches one of the testing file names. If the file name matches, the system will go through a series of API methods which will mimic the steps that are taken by a reviewer to approve, deny, or follow up on an accreditation verification request.
Below are the test file names and their results:
Test 1: More Information Needed
This result will occur when the reviewer has determined that the information provided is not sufficient to make a valid determination of whether the investor is accredited or not. This result will include a note from the reviewer stating why more information is needed and what information will be needed in order to complete the review. For example, a reviewer could input a note similar to the following: “We need the past 2 years of tax information to verify accreditation. The investor provided only one year.”
Test Document File Name: Test_Need_Info
Test 2: Approved Assets
This result will occur when the reviewer has determined that the investor is accredited based on their assets.
Test Document File Name: Test_Approved_Assets
Test 3: Approved Income
This result will occur when the reviewer has determined that the investor is accredited based on their income.
Test Document File Name: Test_Approved_Income
Test 4: All Parties Approved
This result will occur when the reviewer has determined that all parties linked to the account are accredited, therefore the account has been granted the accredited status.
Test Document File Name: Test_Approved_All
Test 5: Rejected
This result will occur when the reviewer has determined that the investor is not accredited. This result may also include a note from the reviewer as to why the investor was not approved. For example, the reviewer could input a note similar to the following: “The investors are not accredited; their income was only $254,000.00.”
Test Document File Name: Test_Rejected
What is an accredited investor?
In the United States, the definition of accredited investor is described by the SEC in Rule 501 of Regulation D.
Who is approving the Accredited status?
As a registered broker dealer, North Capital Private Securities is an authorized third party to approve accreditation statuses. A Registered Principal of NCPS reviews each request and when approved, provides a response via API with an approval status along with a letter from NCPS approving the investor’s accreditation status.
How much does accreditation verification cost?
NCPS charges $25 per check.