Crowdentials Launches Program to Verify Investors Accreditation in Preparation for General Solicitation

CLEVELAND, July 12, 2013-Crowdentials, a startup offering regulatory compliance software, will be launching its new Certified Accredited Investors (CAI) program on July 25, in response to the Securities and Exchange Commission’s ruling to lift the ban on general solicitation. “There are two sides to this ruling,” says Richard Rodman, CEO of Crowdentials. “On one side, the bar for advertising has been lowered. On the flip side, the bar for verifying accredited investors has been raised dramatically.” Under the SEC’s new provisions, issuers are responsible for verifying their accreditation and will be required to take ‘reasonable steps’ to do so. Failure to do so will result in devastating legal and financial pitfalls for issuers. Crowdentials created CAI to make this easier. The CAI program is a third party service that allows accredited investors to verify their status through an online form. Unlike other investor accreditation products and processes on the market, the CAI program does not require the disclosure of tax forms or other sensitive financial information. This makes CAI the fastest and most secure investor accreditation program available. As the SEC demands that issuers register with them 15 days prior to soliciting, many will start advertising to investors on July […]

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