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OPERA IQ

INVESTOR QUALIFICATION

Why investor qualification matters

When a company raises capital in a Rule 506(c) offering, the U.S. Securities and Exchange Commission (SEC) requires that the issuer take “reasonable steps” to verify each purchaser’s accredited investor status, it’s more than the attestation needed for a 506(b) offering. OPERA IQ streamlines that process and brings it under the broker-dealer safe harbor, alongside KYC (Know Your Customer) and AML (Anti‑Money Laundering) checks, so issuers and platforms can verify investors efficiently and document the process for audits or regulatory inquiries.

How OPERA IQ verifies investors, end‑to‑end

OPERA IQ is a secure, customizable investor portal that you can integrate into your website or share as a link. Investors complete identity verification, upload supporting documentation, and authorize the checks required for your exemption or firm policy, all in one sitting. Admins track status in an easily navigable portal; for deeper integrations, TransactAPI offers webhooks and endpoints to automate the verification process.

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When an issuer uses OPERA IQ for 506(c) accredited investor verification, investor documents are submitted through the platform and reviewed by a registered representative of North Capital Private Securities, an SEC-registered broker dealer. The reviewer can approve, decline, or request more information; issuers get real‑time updates, and (importantly) do not receive access to the underlying documents, reducing exposure to personally identifiable information and keeping sensitive files away from unauthorized and prying eyes. Accreditation verifications done by a broker-dealer fall under the broker-dealer safe harbor, meaning the risk and responsibility to take “reasonable steps” fall on the broker-dealer, rather than the issuer.

What we verify under SEC rules

OPERA IQ supports the SEC’s non‑exclusive verification methods for accredited investors. Depending on the investor’s situation, acceptable routes include:

  • Income method: review of IRS forms reporting income for the past 2 complete years (e.g., W‑2, 1099, Schedule K‑1, Form 1040), and a reasonable expectation the same income level will continue for the current year.

  • Net‑worth method: review of bank statements, brokerage statements, certificates of deposit; primary residence is excluded from net worth and joint net worth with a spouse or spousal equivalent is permitted.

Third‑party professional letters: a written confirmation (often called an accredited investor verification letter) from a registered broker‑dealer, registered investment adviser, licensed attorney, or certified public accountant that they have taken reasonable steps and determined the investor is accredited.

Who qualifies as an accredited investor?

Individuals qualify by income or net worth, and certain professional qualifications can also confer accredited status: holders in good standing of the Series 7, Series 65, or Series 82 licenses; directors, executive officers, or general partners of the issuer; and more. For entities, qualification can be based on assets or structure, including entities in which all equity owners are accredited investors.

Built for regulated workflows

OPERA IQ combines identity checks, KYC and AML screening with accredited investor verification, giving you a single workflow and a clear audit trail for private securities offerings. It’s fast to deploy and easy to administer through our portal; for platforms and intermediaries, North Capital’s TransactAPI exposes endpoints for investor onboarding, qualification, subscriptions, and payments.

Why issuers and platforms choose OPERA IQ

  • Lower operational risk: issuers may see statuses and timestamps, not raw tax returns or brokerage statements, helping reduce PII handling risk.

  • Regulatory alignment: methods supported reflect SEC guidance for Rule 506(c) verification, including income, net‑worth documentation, and third‑party accredited investor verification. 

  • Scales with you: embed once, send secure links by email, or integrate via API for high‑volume securities offerings across multiple issuers and funds.

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