Search Results for: accredited investor

April 4, 2020 @ 4:48 pm By JD Alois  |  

Last week, the North American Securities Administrators Association (NASAA) cautioned an SEC Committee about the potential for fraud during the COVID-19 outbreak. NASAA is the lobbying group that represents state and provincial securities regulators. Christopher W. Gerold, NASAA President and Chief of the New Jersey Bureau… Read More

March 18, 2020 @ 1:01 pm By JD Alois  |  

Towards the end of 2019, the Securities and Exchange Commission (SEC) proposed an update to the definition of an accredited investor. The rule change is part of a broader “concept release” that the SEC has issued to review the exempt offering ecosystem and how this… Read More

March 17, 2020 @ 4:07 pm By JD Alois  |  

The North American Securities Administrators Association (NASAA), the entity that lobbies on behalf of state and provincial regulators, is “urging the Securities and Exchange Commission (SEC) not to move forward with its proposal to expand access to high-risk private securities offerings to individual investors.” NASAA… Read More

February 19, 2020 @ 11:02 am By Nick Bhargava  |  

Recently, the Securities and Exchange Commission (SEC) proposed changes to the definition of “accredited investor.” Many issuers and intermediaries hoped the SEC would expand the definition of “accredited investor,” to include qualitative conditions, such as education, or by lowering quantitative thresholds, such as income and… Read More

January 23, 2020 @ 3:06 pm By JD Alois  |  

Outspoken entrepreneur and CEO of Prime Trust Scott Purcell has shared his thoughts on the Securities and Exchange Commission’s (SEC) proposal to modernize the current definition of an accredited investor. At the moment, an accredited investor in the US is measured by a wealth metric…. Read More

January 21, 2020 @ 8:59 am By JD Alois  |  

While investment crowdfunding rules initially were targeted at early-stage ventures in need of growth capita,l the new rules have fueled the rise of investment platforms for another asset class: real estate investment opportunities. Early-stage ventures, from seed rounds to later-stage venture rounds, tend to include… Read More

January 14, 2020 @ 1:24 pm By Anthony Zeoli  |  

While it passed somewhat under the radar with the holiday season, on December 18, 2019, the Securities and Exchange Commission (“SEC”) released a proposal to significantly amend the existing “accredited investor” definition; which is integral in determining who can participate in private securities transactions. The… Read More

January 6, 2020 @ 6:11 pm By JD Alois  |  

The Securities and Exchange Commission (SEC) is on the cusp of a significant update to the definition of an accredited investor (AI). Depending on the final rules, the Commission could broadly expand access to private securities offerings – a sector of the capital markets that… Read More

December 19, 2019 @ 7:34 pm By JD Alois  |  

The President of the North American Securities Administrators Association (NASAA), Christopher W. Gerold, has issued a statement regarding the Securities and Exchange Commission’s (SEC) proposal to modernize and improve the definition of an accredited investor. NASAA is the advocacy and lobbying group that represents state… Read More

December 18, 2019 @ 2:23 pm By JD Alois  |  

Today, the Securities and Exchange Commission (SEC) held a public meeting to discuss, and vote on, various rules impacting the securities markets. Included in the meeting was an update to the definition of an accredited investor. Currently, the definition is determined by a wealth metric…. Read More

December 17, 2019 @ 10:07 pm By JD Alois  |  

Tomorrow (December 18, 2019), in a public meeting by the Securities and Exchange Commission (SEC), the Commissioners will review the definition of an accredited investor. In a revised agenda, the public meeting outlined the specific topics to be addressed by the Commission, with the definition… Read More

December 13, 2019 @ 1:00 pm By JD Alois  |  

This week, the Securities and Exchange Commission (SEC), Small Business Capital Formation Advisory Committee (SBCFAC), submitted a recommendation to the Commission on the definition of an accredited investor. The SEC will look for guidance from the Committee as it values the feedback of front line… Read More

October 8, 2019 @ 10:32 am By JD Alois  |  

In the US, crowdfunding under Reg D (506c) requires proof that the investor is “accredited.” To be accredited, an individual must earn over $200,000 a year or have a net worth of $1 million or more (minus their primary residence). While the rule is widely… Read More

September 24, 2019 @ 5:46 pm By JD Alois  |  

SeedInvest, one of the largest investment crowdfunding platforms in the US, has posted a comment letter pertaining to the Securities and Exchange Commission’s (SEC) concept release on regulatory harmonization. The comment letter is expected to be “one of multiple” letters with this first one addressing… Read More

September 12, 2019 @ 11:29 am By JD Alois  |  

Yesterday, the House Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets held a hearing entitled “Examining Private Market Exemptions as a Barrier to IPOs and Retail Investment.” The hearing saw a debate on the merits of private securities exemptions, such as Reg D, Reg… Read More

August 22, 2019 @ 4:41 pm By JD Alois  |  

Real estate investment platform Groundfloor has announced a new feature that the “wealthtech” company is claiming is an industry first. Groundfloor is now providing non-accredited investors access to fractionalized real estate loans so investors may better manage risk – something previously only available to accredited… Read More

August 12, 2019 @ 12:00 pm By JD Alois  |  

tZERO has announced that its security tokens are now available to trade by non accredited invetors. Previously, only accredited investors could trade in the digital security. tZERO is a blockchain-focused subsidiary of Overstock (NASDAQ:OSTK). tZERO is both a trading and primary issuance platform focused on… Read More

December 13, 2018 @ 6:37 pm By JD Alois  |  

During the 37th annual Government-Business Forum on Small Business Capital Formation, Securities and Exchange Commission (SEC) Chair Jay Clayton opened the event with a couple of interesting statements. Clayton commented on the byzantine ecosystem that has emerged, over many decades of legislation and rulemaking, for issuers… Read More

October 12, 2018 @ 3:07 pm By Cali Haan  |  

The American Securities and Exchange Commission (SEC) has been following up on “scores” of subpoenas it sent in January to companies issuing ICOs (initial coin offerings) and is now focussing on those and “many more” that sold ICOs to unaccredited investors, Yahoo Finance reports. Based… Read More

August 31, 2018 @ 9:36 am By JD Alois  |  

The current definition of an accredited investor is profoundly flawed and a travesty of rule making. Everyone knows it. As it stands today, an accredited investors must earn at least $200,000 (jointly $300,000) or have a net worth of $1 million beyond a primary residence…. Read More