SEC Issues Report on Definition of “Accredited Investor”

The Securities and Exchange Commission issued its “Accredited Investor” review report.

The agency  is contemplating:

  • revising the financial thresholds for individual investors since the number of U.S. households qualifying as accredited investors has increased from approximately 2% of the population to over 10% as a result of inflation, or
  • revising the Accredited Investor definition to allow individuals to qualify as Accredited Investors based on other measures of sophistication.

Raising the income/asset test for inflation would diminish the number of qualified households by 72%.

See the report here: http://www.sec.gov/corpfin/reportspubs/special-studies/review-definition-of-accredited-investor-12-18-2015.pdf

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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