How Long Accredited Investor Verification Lasts

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What does the rule say about timing?
When is the "sale" for timing purposes?
What about 506(b)?
When should you check again?
How do you keep the records?
FAQ

Accredited investor verification does not have one expiry date. The SEC's Rule 506(c) lists methods with their own timing: a third-party letter or a set of account records must be dated within the prior three months, and an investor you verified before can be relied on for up to five years with a fresh written statement at the time of sale. In practice, a sponsor decides how long a check is good for, and the safe habit is to confirm status again for every new deal.

What does the rule say about timing?

The text of Rule 506(c)(2)(ii) lists methods that are not exclusive. For income it asks for IRS forms covering the two most recent years plus a written statement that the investor expects the same level this year. For net worth it asks for statements and a consumer report dated within the prior three months. For third-party confirmation it asks for a written confirmation made within the prior three months. For an investor who was verified earlier, it allows reliance for five years if the investor states in writing at the time of sale that they still qualify. Our full guide to accredited investor verification walks through the methods.

When is the "sale" for timing purposes?

This is the point sponsors miss. The three months run to the time of the sale, not to the date a letter was requested. A letter obtained at the start of a long raise may be stale by the time the investor signs. Build the check into the signing step so the date lines up. If a closing is moved back, see what to tell investors when the closing date moves.

What about 506(b)?

Under Rule 506(b), a sponsor may rely on a reasonable belief that the investor is accredited and does not have to run a 506(c)-style verification. Many sponsors still collect more than a checkbox. DoorRaise verifies every investor is accredited in 506(b) and 506(c) raises alike, so the same timing question applies on both. See 506(b) vs 506(c) and accredited investor questionnaire.

When should you check again?

A new deal, even for the same investor and sponsor.
A signing date more than three months after the supporting document's date.
Any sign that status changed, such as a stated drop in income or a sale of a business.
A change in who is investing, such as moving from an individual to an entity. See accredited investor LLC and entity requirements.

How do you keep the records?

Keep the verification, its date, the method and who checked it, for as long as your retention policy says. See record retention for sponsors and protect the documents. See protecting investor data.

FAQ

Can I reuse a letter for a second deal?

Only if it is still within the rule's window at the time of the second sale. When it is not, get a new one or use the five-year route with a fresh written statement.

Does an investor need a new letter for every deal?

Not always. The practical answer is a new confirmation each time, because it is the simplest way to show the check was current.

Does the five-year rule remove the need to ask?

No. The investor still gives a written statement at the time of sale.

Sources

This article is general information as of November 2026, not legal, tax or investment advice. Talk to your own attorney about your verification policy. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.