TheCorporateCounsel.net

On Friday, the SEC announced that it had issued a Staff Report on the accredited investor definition. The Dodd-Frank Act directs the SEC to review the accredited investor definition as it relates to natural persons every four years to determine whether the definition should be modified or adjusted. The Staff previously reviewed the definition in 2015 and 2019, and now the Staff from Corp Fin and the Division of Economic and Risk Analysis prepared this report in connection with a third review of the accredited investor definition. The SEC notes in its announcement:

The report examines the current status of the accredited investor pool and concludes with a review of frequently suggested revisions to the accredited investor definition received from a variety of sources, including public commenters, the Investor Advisory Committee, and the Small Business Capital Formation Advisory Committee.

This report could potentially serve as a basis for future rulemaking on the always difficult topic of accredited investor status for natural persons.

– Dave Lynn