The 3C7 is a section of the Investment Company Act of 1940, which allows for the exclusion of investment companies from standard SEC registration requirements if all investors have been deemed 'accredited investors' or 'qualified purchasers.'

Both initial purchasers and subsequent transferees are considered qualified or accredited under 3C7. Section 3C7 is also commonly used among hedge fund companies, as 3C7 helps them to avoid certain requirements of the SEC.

An issuer or company not based in the United States will only meet 3C7 guidelines for those purchasers considered U.S. investors. In a typical 3C7 transaction, all purchasers must sign representation verifying qualified or accredited status. Since 1940, 3C7 has been amended to the Investment Company Act.