Investor verification, delivered through the platform
Accredited investor verification, qualified purchaser status, KYC/AML, and bad-actor checks, reviewed by North Capital registered representatives under broker-dealer safe harbor. Access it the way that fits how you work.
Compliance-grade verification, end to end
Reg D 506(c) compliant verification. We verify income (W-2, 1099, K-1), net worth (bank/brokerage statements), professional certifications (Series 7, 65, 82), and entity status. Issuers never see raw documents; BD safe harbor applies.
For funds requiring QP status under the Investment Company Act, we verify investment portfolio sizes and entity qualifications.
Comprehensive KYC and AML screening including OFAC, PEP, and sanctions lists. Bad actor checks for covered persons ($125/person). Full audit trail for regulatory inquiries.
Reviewed by registered representatives
Every verification is conducted by a North Capital registered representative. Issuers receive status updates and timestamps; they never see raw investor documents. This keeps the issuer covered under broker-dealer safe harbor and the investor's sensitive data secure.
- SEC non-exclusive methods: income, net worth, 3rd-party letter
- Broker-dealer safe harbor for issuers
- Full audit trail for regulatory inquiries
- Typical turnaround: 1 business day
Three ways to deliver verification
Verification isn't a standalone product; it's a capability of the North Capital platform. Pick the delivery model that fits.
Frequently asked questions
Who qualifies as an accredited investor?
Individuals qualify by income ($200,000 for the last two years for individuals, or $300,000 with a spouse) or net worth ($1 million or more, excluding primary residence). Holders of Series 7, 65, or 82 licenses also qualify, as do directors, executive officers, and general partners of the issuer. Entities qualify with $5 million or more in assets, or when all equity owners are themselves accredited.
What is broker-dealer safe harbor for 506(c) verification?
Under SEC Rule 506(c), issuers must take reasonable steps to verify that all investors are accredited. The SEC's non-exclusive methods include using a registered broker-dealer as the verifier. When North Capital Private Securities performs verification, the issuer receives safe harbor from liability for verification errors made in good faith.
What is the difference between an accredited investor and a qualified purchaser?
An accredited investor is defined under Regulation D and has lower thresholds (income, net worth, or professional credentials). A qualified purchaser is defined under the Investment Company Act of 1940 and requires $5 million or more in investments for individuals, or $25 million for entities. QP status is required for investors in Section 3(c)(7) funds.
How long does verification take?
Typical accredited investor verification turnaround is 1 business day from when the investor submits documents. Bad actor checks may take 3 to 5 business days depending on the number of covered persons and their backgrounds.
Do issuers ever see investor financial documents?
No. North Capital reviews W-2s, 1099s, K-1s, brokerage statements, and other sensitive documents internally. Issuers receive only verification status and timestamps. This protects investor privacy and preserves the broker-dealer safe harbor.
Does verification need to be repeated for each offering?
Yes. SEC Rule 506(c) requires that verification occur within the prior three months of each new investment (a 90-day window). Investors who participate in multiple North Capital offerings are re-verified each time.
Have an offering ready to verify? Our team will walk you through setup.