Series 79 practice questionmediumRegulation D
In a Regulation D Rule 506(c) offering, which verification method would NOT satisfy the requirement for confirming accredited investor status?
- AReviewing IRS forms that report income for the past two years
- BAccepting a signed investor questionnaire with no supporting documentation✓ Correct answer
- CObtaining a letter from an attorney specifying the investor's net worth
- DReviewing brokerage statements indicating sufficient assets
Explanation
Why B — Accepting a signed investor questionnaire with no supporting documentation
Rule 506(c) requires issuers to take reasonable steps to verify accredited status. A mere signed questionnaire is insufficient without documentation. The trap is believing self-certification is adequate under 506(c), which it is not.
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