b'How to Determine Investor Suitability An asset manager has the obligation to determine whether an investor is suitable for the offering; specifically, if the investment opportunity being offered matches the investors investment goals, and 1.Whether the investor is accredited or non-accredited, but sophisticated, and2.Whether the investor can afford to lose the money.If the answer to (1) is No, the investor is not qualified to invest in the offering, and if the answer to (2) is No, the asset manager should not allow that investor to subscribe to its offering.Everyissuershouldhaveawrittenprocedureforpre-qualifying investors to which it strictly adheres with every prospective investor and further,theissuermusthavearecord-keepingsystemtodocument complianceforeveryinvestorwhosubsequentlyparticipatesinaRule 506(b) offering. Example Questions to Determine Suitability The following list includes example questions you may want to ask prospective investors to determine whether they meet the investor suitability requirements for a Rule 506(b) offering: Whatisyourcurrentnetworth,excludingequityinyour primary residence? Has your last two yearsincomeexceeded$200,000/year if single or $300,000/year if married or co-habitating? 236'