<Ul> <Li> The investors in the offering are all accredited investors; and </Li> <Li> The company takes reasonable steps to verify that the investors are accredited investors, which could include reviewing documentation, such as W - 2s, tax returns, bank and brokerage statements, credit reports and the like . </Li> </Ul> <Li> The investors in the offering are all accredited investors; and </Li> <Li> The company takes reasonable steps to verify that the investors are accredited investors, which could include reviewing documentation, such as W - 2s, tax returns, bank and brokerage statements, credit reports and the like . </Li> <P> Another change was the amendment of SEC Rule 147 . Section 3 (a) (11) of the Securities Act allows for unlimited capital raising from investors in a single state through an intrastate exemption . However, the SEC created Rule 147 with a number of requirements to ensure compliance . For example, intrastate solicitation was allowed, but a single out - of - state offer could destroy the exemption . Additionally, the issuer was required to be incorporated and do business in the same state of the intrastate offering . With the expansion of interstate business activities because of the internet, it became difficult for businesses to comply with the exemption . Therefore, on October 26, 2016 the SEC adopted Rule 147 (a) which removed many of the restrictions to modernize the Rules . For example, companies would have to do business and have its principal place of business in the state where the offering is sold, and not necessarily where offered per the prior rule . </P>

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