Verify once, document forever
Under Reg D Rule 506(c), you must take "reasonable steps" to verify that every LP is an accredited investor. That means more than a checkbox on a subscription agreement. It means collecting documentation, tracking expiration, and maintaining records that survive an SEC examination.
Start your free trialYou closed your fund with 18 LPs. Your attorney collected accreditation letters during onboarding and filed them somewhere. Fast forward 18 months — three of those letters have expired, two LPs re-invested in Fund II, and the SEC just sent an examination notice. Can you produce current, valid accreditation documentation for every investor in both funds within 48 hours?
Most emerging managers can't. Accreditation verification gets treated as a one-time onboarding task, but the SEC views it as an ongoing obligation. Third-party verification letters from attorneys, CPAs, or broker-dealers are typically valid for 90 days from the date of the investment. If an LP makes an additional capital commitment 18 months later, you need fresh verification — not the letter from the original close.
Archstone centralizes every LP's accreditation status in a single dashboard. Upload verification documents during onboarding, and Archstone tracks expiration dates, sends re-verification reminders before additional capital events, and stores everything in an encrypted, audit-ready format. When the SEC examiner asks for your accreditation files, you export them in two clicks.
Send LPs a secure link to upload their accreditation documentation directly into Archstone. No more email attachments with sensitive financial information sitting in your Gmail. Documents are encrypted at rest and organized by LP automatically.
Support all SEC-recognized verification methods: income verification (two years of tax returns or W-2s exceeding $200K/$300K joint), net worth verification (asset and liability statements), professional certification (Series 7, 65, 82 holders), and entity status verification for institutional LPs.
Third-party verification letters expire — typically 90 days from the investment date. Archstone tracks every document's validity period and sends automated reminders before expiration, before subsequent closes, and before any additional capital commitments from that LP.
Accreditation documents contain sensitive personal financial information — tax returns, bank statements, brokerage accounts. Archstone stores them with encryption at rest, access logging, and role-based permissions. Only authorized team members can view LP financial documents.
See every LP's accreditation status at a glance: verified, pending, expired, or needs re-verification. Filter by fund, verification method, or expiration date. The dashboard turns red for any LP whose verification has lapsed — you'll never accept capital from an unverified investor by mistake.
Generate a complete accreditation report for any fund: each LP's name, verification method, document dates, expiration status, and re-verification history. Export as PDF or CSV for your compliance counsel or SEC examiner. The report includes a verification timeline showing every step taken for each LP.
When a new LP commits to your fund, send them a secure verification link alongside the subscription documents. They upload their accreditation proof, you review and approve it in Archstone, and the verification is documented before any capital changes hands. Clean, compliant, professional.
For funds with multiple closes or follow-on vehicles, LP accreditation needs to be current at the time of each capital commitment. Archstone flags LPs whose verification is approaching expiration and sends re-verification requests automatically — so you're never caught accepting capital on a stale letter.
SEC examiners routinely request accreditation documentation for all investors in a Reg D offering. With Archstone, you export a comprehensive report — verification method, document dates, re-verification history — in minutes. No scrambling through email archives or calling your attorney's office for files.
Archstone supports all methods recognized by the SEC under Rule 506(c): income verification via tax returns or W-2s, net worth verification via asset and liability documentation, third-party verification letters from attorneys, CPAs, or registered broker-dealers, and professional certification verification for holders of Series 7, 65, or 82 licenses.
Archstone provides the tools to collect, store, and track accreditation documentation — but it does not replace legal counsel. The platform follows SEC guidance on "reasonable steps" for verification under Reg D Rule 506(c). We recommend working with your securities attorney to ensure your verification procedures meet current regulatory standards for your specific fund structure.
The SEC requires verification at the time of each sale of securities. For funds with a single close, verification at subscription is sufficient. For funds with multiple closes or follow-on vehicles, LPs should be re-verified before each additional capital commitment. Archstone defaults to flagging verifications older than 90 days, which you can adjust based on counsel's guidance.
Archstone retains all accreditation documents for the life of the fund plus five years, consistent with SEC recordkeeping requirements under Rule 204-2. Documents are encrypted at rest and access-logged. You can export or delete records at any time, but we recommend retaining them for at least the SEC's recommended retention period.
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