Statement on the Proposed Expansion of the Accredited Investor Definition by Allison Herren Lee

TL;DR - The SEC has proposed amendments that would expand the pool of people that could qualify as accredited investors.

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Tags - accredited investor, private market, SEC

Questions answered:

  • What effect would the proposed amendment to the accredited investor definition have?

Summary:

  • 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.

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