The current interpretation of the accredited investor standard is misaligned with the courts’ and the SEC’s original intention of protecting those who cannot “fend for themselves”. The SEC should modify the standard with some adjustments implementing sophistication credentials, adjustments to assessments for wealth requirements, and checks on leverage.

Accredited investor, SEC regulation, sophisticated investors, institutional investors

What is the current interpretation of accredited investor?

Does it protect the classes it is supposed to?

How should it change?