SAN DIEGO, CA--(Marketwired - January 24, 2014) - Today, EarlyIQ, Inc. announced the commercial availability of its industry leading, fully hosted, secure and confidential 506(c) accredited investor compliance suite. The application suite is specifically designed to allow accredited investors (as defined in Rule 501 of Regulation D), online funding platforms, broker dealers, and companies raising private capital under U.S. Securities and Exchange Commission (SEC) Regulation D, 506(c) to comply with the requirement for issuers of securities to take reasonable steps to verify the accredited status of investors in the securities offered.
For accredited investors, EarlyIQ's hosted solution enables accredited investors to confidentially verify their status once, then use their personal, dynamically generated, encrypted certificate as proof of their status across multiple investment opportunities, while allowing the investor to control viewership of the certification. The suite is also available for integration with online funding platform partners which helps streamline the investor application and validation process, without the potential for conflict of interest in the certification process.
"We recognize that privacy is a significant concern for investors and partners alike," said Steve Yin, co-founder and CEO of EarlyIQ. "Investors can be confident that their names and credentials will not appear on any accredited or angel investor list to be viewed and searched by people they don't know. Moreover, issuers and partners can be confident that the certification was issued by an objective 3rd
For online funding platforms, EarlyIQ has created its Network Partner investor service. The service enables participating online funding platform partners to quickly and seamlessly validate accredited investor status via API of any investor who has previously received their certificate from Early IQ.
The EarlyIQ accredited investor certification suite enables investors to maintain complete control of their credentials and guards against fraudulent use. By using the service, an investor declares their status and qualification as accredited then securely uploads supporting documentation. Alternatively, the investor can take advantage of the EarlyIQ interface with the IRS via IRS Form 4506T to enable EarlyIQ to receive an income tax transcript supporting income requirements automatically. An EarlyIQ analyst then verifies compliance with the SEC accredited investor requirements. The detailed personal information is never shared with anyone outside of EarlyIQ. Rather, the investor is given an encrypted, dynamically generated, electronic certificate that simply shows their accredited status. This approach offers key benefits over paper-based or static electronic certification by ensuring the information underlying the certificate is current, per SEC rules and regulations, and preventing fraudulent manipulation of the certificate. The suite includes:
- Investor identity validation and positive authentication
- Secured repository for accreditation credentials
- Encrypted, dynamic certificate generation
- Exclusive invitation-only sharing of certificates
- Real-time credential currency validation
Early IQ, Inc. is a San Diego, California based, hosted software, information and analytics company serving early stage capital markets including crowdfunding, peer lending, angel, accredited and professional investment. We provide an industry-leading suite of tools for diligence, regulatory compliance and fraud mitigation. Our efficient, secure and streamlined solutions are used to help vet and evaluate private investment opportunities while also enabling compliance with Federal regulations including SEC Regulation D, Rule 506(c) accredited investor verification and Bad Actor prevention. www.earlyiq.com