Financial Reform Proposal: The Changing Standard for an Accredited Investor

As financial reform has made its way through Congress there have been several proposed changes to the standard of what it takes to be an accredited investor. In 1982, the SEC prescribed the standard in Rule 501 of Regulation D : 5. Any natural person whose individual net worth, or joint net...

Dodd-Frank Wall Street Reform Act Includes Immediate Change to Securities Act of 1933 "Accredited Investor" Definition for Natural Persons

by Kristy T. Harlan and Vincent J. Pisano On July 21, President Obama signed the Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). A change to the definition of "accredited investor" under the Securities Act of 1933, takes effect immediately and may impact issuers...

The First Attack on the Accredited Investor Standard

Many of the provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act merely provide for future regulatory framework. That it is in part true for the changing definition of "accredited investor" under the Securities Act. The other part is that the definition changed once...

SEC Proposes “New” Standard for Accredited Investor

If you are involved in the private placement of securities, then you have been waiting to hear how the SEC was going to change the definition of "accredited investor." Section 413(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires the definitions of "accredited...

SEC Votes on Accredited Investor, “Say on Pay”

The Securities and Exchange Commission was very busy today in their latest work implementing the Dodd-Frank bill. In addition to proposing new rules relating to registration of investment firms (and unveiling a new proposed form to do so), they acted on the "accredited investor" definition...

SEC Adopts New Definition of Accredited Investor

On December 21, 2011, the Securities and Exchange Commission adopted final rules for calculating net worth under the new definition of Accredited Investor . As adopted in July 2010, Section 413(a) of the Dodd-Frank Act requires the definition of "accredited investor" in the Securities Act...

The SEC Will Likely Update its Definition of “Accredited Investors” Very Soon

Most of the startup capital comes from accredited investors through investments made in reliance upon Rule 506 of Regulation D . According to a study by the University of New Hampshire’s Center for Venture Research, in 2013, almost 71,000 benefited from $24.8 million in investments made by accredited...