What is Qualification ?

What is Qualification and how can I qualify my candidates ?

Qualification represents a distinctive feature of the T-REX Token (based on the ERC-3643 standard), setting Tokeny apart from other solutions. Consider Qualification as a thorough onboarding process, where investors submit specific personal and investment profile information, along with AML-related data and documents required by the Issuer, and undergo digital identity verification. Following a review of investors' KYC & AML data by the Issuer, successful qualification results in the deployment of the investor's ONCHAINID and issuance of KYC claims. Picture the ONCHAINID as the investor's on-chain passport, with claims acting as stamps enabling investors to invest/transact in one or multiple tokens from the Issuer that share the same qualification requirements.

There are two methods for investors to become qualified, each outlined in a separate article below:

1. Qualification funnel: Investors undergo qualification via the Investor app, where they provide the necessary information and documentation.

2. Issuer-Managed Qualification: The Issuer qualifies investors by uploading a CSV (Comma Separated Values) file containing Investor data.

In this article, our primary focus is on providing guidance regarding the actions required to qualify investors or update their qualification status, while also outlining the various qualification statuses.

What is the significance of various Qualification statuses?

 

In this section, we will examine the different Qualification statuses:

How do I qualify a candidate?

 

Click through this step-by-step, interactive demo walkthrough of candidate’s qualification or watch the brief video below which provides a handy overview of the steps involved in qualifying a candidate.

1. Let's get started by selecting 'Investors'.

2. Next, click on 'Candidates'.

3. Hit the 'Filters' button to sort through candidates.

4. Set filters to show only candidates by qualification status.

5. Choose the 'Pending' status to see unqualified candidates.

6. You will see all candidates with 'Pending' status.

7. Pick the candidate you want to qualify by clicking the 'Eye' icon.

8. Continue with the candidate's KYC/KYB and AML screening according to your internal procedures. If you use a third-party provider for identity verification or KYC, simply review any gaps between what the provider has verified and the remaining data or documents (e.g., source of funds, etc.).

9. Once you're done with the verification, click on 'Qualify'.

10. Click on 'Qualify' again to confirm your selection.

11. Please allow some time for the qualification status to transition from 'In Progress' to 'Qualified'. This process may take a few minutes, depending on the congestion of the blockchain, and may require refreshing your browser.

12. You'll soon see the candidate's qualification status updated to 'Qualified'. To see your newly qualified investor in the Investor list, simply head over to the 'Investor list.'

13. Lastly, sort the list by 'ONCHAINID Last Updated' to locate your freshly qualified candidate, now a potential 'Investor', on the top of the 'Investor list'.

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Can I qualify multiple candidates simultaneously or in bulk?

 

Yes, you can. Once you've finished the KYC/AML verification for your candidates, you can qualify them in bulk. The steps for doing so are outlined in this interactive demo or in the video below.

1. Let's begin by navigating to the 'Candidates' section.

2. Next up, filter the candidates based on their qualification status.

3. Now, select the 'Pending' candidates.

4. Moving forward, head over to the 'KYC' area.

5. Select the candidates with 'Approved' KYC status.

6. Next, choose the candidates you want to qualify by selecting the checkbox next to their names.

7. Proceed by clicking on 'Qualify'.

8. Review the list of candidates and proceed by clicking on 'Qualify'.

9. The qualification is in progress. Please allow some time for the qualification status to transition from 'In Progress' to 'Qualified'. This process may take a few minutes, depending on the congestion of the blockchain, and may require refreshing your browser.

How can I revoke my investor’s qualification?

 

The steps for doing so are outlined in this interactive demo or in the video below.

1. Navigate to and select the 'Investors' drop-down menu.

2. Choose 'Investor List' from the dropdown.

3. Identify the investor you wish to revoke and click the 'Eye' icon.

4. Click the 'Revoke' button to proceed.

5. To confirm your action, hit the 'Yes, revoke qualification' button.

6. You may now refresh your browser or return to the 'Investor List'.

7. Once back, notice the investor now displays as 'Revoked'. The Revoked investors automatically lose access to the Investor portal.

How can I re-qualify a revoked investor?

 

The steps for doing so are outlined in this interactive demo or in the video below.

1. Navigate to and select the 'Investors' drop-down menu.

2. Identify the revoked investor you wish to re-qualify and click the 'Eye' icon.

3. Next, review the Investor's profile and click on 'Re-qualify'.

4. Conclude by selecting 'Yes, re-qualify' to confirm re-qualification.

5. The Qualification is in progress. You may now refresh your browser or return to the 'Investor List'.

6. Once back, notice the investor now displays as 'Qualified'. (↓)

Will my candidates receive an email notification when there is a change in their Qualification status?

 

Yes. Unless you specify otherwise, the default configuration includes a series of three customized automatic email notifications:

1. 'Qualification Success': This email is linked to the Qualification status "Qualified" status and is automatically sent to the candidate as soon as their ONCHAINID and the corresponding KYC claim are deployed.

2. 'Qualification Revoked': This email is tied to the Qualification status “Revoked” and is automatically sent to the candidate upon the Issuer/Agent’s revoking of investor’s Qualification.

3. 'Qualification Success CSV': This email is linked to the Qualification status - "Qualified" and corresponds to the successful action of Issuer’s/Agent’s qualifying investors via CSV and is sent to investors when their ONCHAINID and the corresponding KYC claim are deployed. The email provides further instructions on account creation for the Investor Portal.

What is the difference between the “KYC status” and the “Qualification status”?

 

The KYC status primarily revolves around the verification of a candidate's identity and proof of address. In the context of Tokeny's ERC-3643, the 'Qualification' status is tied to the Issuer's successful validation of the candidate, allowing them to transact and invest in the Security Token. This qualification process extends beyond the candidate's KYC status, as the KYC forms a part of the overall qualification process.

For instance, even if a candidate has completed the KYC verification, further qualification may involve assessing their accreditation status and conducting a thorough review of additional documentation. Only upon meeting all the qualification requirements will the Issuer formally 'Qualify' the candidate. The successful qualification results in the deployment of the Investor's digital 'passport,' known as the ONCHAINID.

Is it possible for my candidates with the ‘KYC Approved’ status to be automatically qualified?

 

Yes, your CSM can readily customize the workflow to automatically qualify candidates with the 'KYC Approved' status.

While we do offer this option, we typically counsel against automatic qualification. Given the potential variations in KYC/AML requirements, Issuers often find it necessary to review additional documentation. Rarely does a scenario arise where investors can be automatically qualified without further actions.