Why a Questionnaire Doesn't Protect Your 506(c) Offering
from Syndication Attorney Field Notes with Tilden Moschetti Hosted by Tilden Moschetti
In this episode of Syndication Attorney Field Notes, Tilden Moschetti breaks down the critical difference between self-certification under Rule 506(b) and reasonable verification under Rule 506(c). Many sponsors mistakenly believe that a detailed accredited investor questionnaire, signed under penalty of perjury, offers blanket protection for any Regulation D offering. We explore why reusing 506(b) paperwork for a publicly advertised 506(c) raise creates an exemption issue, how to actually verify an investor's status, and why you don't necessarily need to pay a third-party service to do it. Tune in to learn how to safely match your paperwork to your exemption. Also see: Accredited Investor Questionnaire vs. 506(c) Verification — https://www.moschettilaw.com/accredited-investor-506c-verification/ Note: This episode's audio is generated using AI voice cloning technology based on Tilden Moschetti's written work. Watch the video on YouTube: https://youtu.be/vLKuYcp3w1g
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What this episode covers
Sponsors often assume a signed accredited investor questionnaire is enough to protect their Regulation D offering. In this Field Note, we explore why a sworn statement works for Rule 506(b) but falls short as reasonable verification for a Rule 506(c) raise.
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