TL;DR - The SEC has proposed amendments that would expand the pool of people that could qualify as accredited investors.
Helpfulness - 3
Tags - accredited investor, private market, SEC
- What effect would the proposed amendment to the accredited investor definition have?
- The goal of the proposed change is to expand the definition of accredited investor in order to increase the pool of investors in high-risk, private markets.
- The change would add a process by which the SEC could designate persons who fall under the wealth threshold, but with professional or education certifications, as accredited investors.
- The thresholds fail to index for inflation.
- The proposed amendment is not unanimously supported.
Follow up links:
- Proposed amendment, https://www.sec.gov/rules/proposed/2019/33-10734.pdf
- Accredited investor, https://www.investopedia.com/terms/a/accreditedinvestor.asp