Staff from the SEC’s Divisions of Corporation Finance and Economic and Risk Analysis has prepared and issued a report in connection with the review of the accredited investor definition. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC is directed to review the accredited investor definition as it concerns natural persons every four years to determine whether the definition should be revised.
The report is an analysis of the current status of the accredited investor pool that concludes with a review of frequently suggested revisions to the accredited investor definition submitted by a variety of sources, including public commenters, the Investor Advisory Committee, and the Small Business Capital Formation Advisory Committee.
This year’s review centers on changes in the composition of the accredited investor pool since the definition was adopted, as well as the extent to which accredited investors have the ability to sustain the risk of loss. It also investigates if investors have access to information that has traditionally been associated with an ability to fend for themselves and accredited investor participation in the general market for exempt offerings and the Regulation D market more specifically.
Sources:
SEC Issues Staff Report on Accredited Investor Definition (sec.gov)
Staff Report (sec.gov)
