The Securities and Exchange Commission is holding an open meeting tomorrow to discuss the report of the Division of Corporation Finance on the definition of “accredited investor” and general solicitation under Reg. D. It will be webcast starting at 9:30AM.
Issuers using private placement exemptions raised over $1.3 trillion in 2014 alone, an amount comparable to what was raised in registered offerings.
Increasing the individual income threshold from $200,000 to $500,000 and the net worth threshold from $1 million to $2.5 million to reflect inflation would DECREASE the number of qualifying households by 28% based on income and DECREASE the number of qualifying households by 40% based on net worth.
Making it harder to be an “accredited investors” will have a severe negative impact on capital raising in this country.