What Is Accredited Investor?
An individual or entity that meets SEC income or net-worth thresholds and is therefore permitted to invest in certain private, unregistered securities offerings. The status reflects a presumed ability to bear greater financial risk.
Accredited Investor across 5 exams
Accredited Investor appears on the following exams. Each defines it in the context candidates are tested on:
- Series 7
- An individual or entity that meets SEC income or net-worth thresholds and is therefore permitted to invest in certain private, unregistered securities offerings. The status reflects a presumed ability to bear greater financial risk.
- Series 65
- An individual or entity meeting SEC income or net worth thresholds, allowing them to participate in private offerings with fewer regulatory protections. Advisers must verify accreditation status before recommending unregistered securities to limit their own liability.
- Series 63
- An investor meeting specific income or net worth thresholds who may purchase certain securities exempt from registration requirements. State regulators often coordinate with federal definitions to establish which issuers may conduct unregistered offerings to accredited investors.
- Series 66
- A natural person or entity meeting specific income and net worth thresholds, allowing them to participate in certain private securities offerings exempt from standard registration requirements. On the Series 66, understanding accredited investor status is critical because it determines which securities regulations apply to client offerings and affects suitability recommendations.
- Series 31
- An individual or entity meeting specific income or net-worth thresholds established by the SEC, allowing investment in private offerings exempt from certain registration requirements. Many commodity pools and managed futures offerings are restricted to accredited investors due to their complexity and risk.