Tagged: accredited investor

Comment Period Ends on Proposal to Update the Definition of an Accredited Investor. So Who Said What?

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

NASAA Slams SEC’s Proposal to Update Accredited Investor Definition to Enable Sophisticated Individuals to Qualify

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

Scott Purcell Slams the SECs Proposed Update to the Accredited Investor Rule: “it still remains policy that only rich people are permitted to get rich”

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

Not Just About Startups: Democratizing the Accredited Investor Definition Will Allow More People Access to Lower Risk Real Estate Investments

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

The New Proposed “Accredited Investor” Definition Changes And Why They Are A BIG Deal

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

Have Your Say: The SEC is Accepting Feedback on Update to the Definition of an Accredited Investor

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

The North American Securities Administrators Association Hammers SEC’s Move to Broaden the Definition of an Accredited Investor

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

SEC Proposes Update to Accredited Investor Definition, Includes Sophistication Amendments

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

SEC to Review Accredited Investor Definition in Public Meeting of the Commission

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

SEC Small Business Capital Formation Advisory Committee Tells Commission to Update Accredited Investor Definition with a Sophistication Qualification

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

SEC Chairman Jay Clayton Testifies in Front of Senate Banking Committee

Securities and Exchange Commission (SEC) Chairman Jay Clayton spent his morning today (December 10, 2019) testifying in front of the Senate Committee on Banking, Housing, and Urban Affairs. In prepared testimony (embedded below), Chair Clayton addressed multiple issues including those that impacting regulatory modernization as… Read More

Private Equity Has Better Returns & Lower Volatility than Public Markets: Will the SEC Make it Easier for Retail Investors to Gain Access to this Asset Class?

Earlier this week there was a meeting of the Securities and Exchange Commission’s (SEC) Small Business Capital Formation Advisory Committee. During the meeting, the Committee discussed the SEC’s Concept Release on regulatory harmonization and several topics specifically. First, was the subject of access to capital… Read More

SeedInvest Hammers on Definition of an Accredited Investor: “the current accredited investor definition is severely misguided and needs to change”

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

SEC Chair Jay Clayton: We Should Increase the Attractiveness of Our Public Capital Markets & Increase Opportunities for Main Street Investors in Private Markets

Securities and Exchange Commission Chairman Jay Clayton tipped his hand a bit regarding the ongoing “concept release” – an SEC review of the private securities exemption ecosystem and how regulated private markets operate.  In a speech delivered at the Economic Club of New York this… Read More

Will the Definition of an Accredited Investor Finally get Fixed? The JOBS and Investor Confidence Act Includes Bill that May Finally Address this Longstanding Problem

The current definition of an accredited investor is a profound act of disenfranchisement. Policy makers decision to segregate investors based solely on how much money they have is a myopic, discriminatory act of rulemaking. The punitive definition of an accredited investor has been in place… Read More

Update to the Definition of an Accredited Investor Passes House by Voice Vote

In a strong sign of bipartisan support, the House of Representatives approved by voice vote HR 1585 or the Fair Investment Opportunities for Professional Experts Act. Sponsored by Representative David Schweikert from Arizona, HR 1585 may address the profound shortcomings in the current definition of… Read More

Creating Financial Prosperity for Business & Investment Act Quickly Passes House and Moves to Senate

Entrepreneurs and small business may have something for them under the Christmas tree this year courtesy of Congress.  The House of Representatives passed HR 6427 today as legislators scrambled to get a few things done before they disperse for the coming Holiday.  While there is… Read More

SEC ACSEC Meeting to Review Reg A+, Elio Motors Experience

The SEC Advisory Committee on Small and Emerging Companies (ACSEC) has published its agenda for its meeting next week and it should be a more interesting gathering. As part of the ACSEC program, the SEC Division of Corporate Finance will deliver an update on the… Read More

The Renaissance of the Retail Investor: Fixing America’s Wealth Disparity

This is important.  In the United States, the wealth disparity is growing – not closing. While there are multiple reasons why this wealth gap has occurred, the growing dominance of big money over smaller investors has clearly exacerbated this societal challenge.  Unfortunately, policy officials have… Read More

Engine to SEC: Have You Checked Out How the Brits Define an Accredited Investor?

Engine, an advocacy group based in San Francisco that promotes policy that supports all of the cool technology bubbling up from the most creative community in the world, has added their $0.02 to the debate regarding the definition of an Accredited Investor. The discussion regarding… Read More

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