Adding alternative investments to your portfolio is now easier than ever thanks to many crowdfundingwebsites. However, these websites often fail to incorporate two cornerstones of private investing: Accreditation and Suitability. Since crowdfunding portals cannot give investment advice, they rely solely on the investor’s ability to select deals that may or may not prove successful. At Carofin, we ensure all investors in our carefully selected offerings are not only accredited, as required in some Regulation Dofferings, but the risk present in private offerings issuitable to each. Accreditation is a hard test imposed by the SEC: Is the investor in a financial position (e.g., sufficient net worth or annual income) to participate in these riskier offerings? Suitability, on the other hand, is a soft test which requires Carofin to establish that a recommended security fits its customer’s investment profile and goals.
Accreditation & Suitability