SEC Explores Re-visiting “Accredited Investor” Definition

The Securities and Exchange Commission (SEC)’s Investor Advisory Committee has recommended changes to the definition of accredited investor that consider other ways of measuring financial sophistication. In a public statement released Wednesday, the SEC indicated that time is ripe for the SEC to review the appropriate conditions for determining whether someone is or isn’t an “accredited investor”. SEC: Exemption from registration requirements The current definition of “accredited investor” attempts to identify those individuals who are anticipated to be able to fend for themselves and protect their interests when participating in financial markets. The current definition attempts to do this by…