Getting started
Confirming accreditation
ADR funds are offered to accredited investors only. This is a condition of the exemption the funds are raised under, so it applies to every investor without exception, and it is a separate step from verifying who you are.
Why the rule exists
A fund can either register its offering with the SEC, which is slow and expensive, or use an exemption. ADR uses an exemption that permits raising capital publicly, and the trade for that freedom is that every investor admitted has to be accredited, and the fund has to take reasonable steps to verify it rather than simply accept a tick box.
That last part is why accreditation asks more of you than a self declaration. The obligation to verify sits with the fund.
Who qualifies
The SEC sets the criteria, not ADR. The common routes for an individual are income and net worth, and there are further routes including certain professional licences.
| Income | Income above 200,000 US dollars in each of the last two years, or above 300,000 jointly with a spouse, with a reasonable expectation of the same in the current year. |
|---|---|
| Net worth | Net worth above 1,000,000 US dollars, individually or jointly with a spouse, excluding the value of your primary residence. |
The definitive list is maintained by the SEC. Read it at investor.gov rather than relying on a summary, including this one.
How you evidence it
You confirm which test you meet, and provide supporting evidence. What counts as evidence depends on the route you use, and the platform tells you what it needs once you have chosen. A written confirmation from a licensed accountant, attorney or investment adviser is generally accepted in place of financial documents, which many investors prefer because it discloses less.
If you do not qualify
We cannot admit you to a fund, and there is no discretion available to us on that point. You are welcome to stay on the mailing list and to read everything we publish. If your circumstances change, the check can be run again.
Identity verification is the other half of onboarding and is covered in verifying your identity.