Source - https://www.sec.gov/news/public-statement/statement-lee-2019-12-18-accredited-investor

TL;DR - The SEC has proposed amendments that would expand the pool of people that could qualify as accredited investors.

Helpfulness - 3

Tags - accredited investor, private market, SEC

Questions answered:

• What effect would the proposed amendment to the accredited investor definition have?

Summary:

• The goal of the proposed change is to expand the definition of accredited investor in order to increase the pool of investors in high-risk, private markets.
• The change would add a process by which the SEC could designate persons who fall under the wealth threshold, but with professional or education certifications, as accredited investors.
• The thresholds fail to index for inflation.
• The proposed amendment is not unanimously supported.

Follow up links:

• Proposed amendment, https://www.sec.gov/rules/proposed/2019/33-10734.pdf
• Accredited investor, https://www.investopedia.com/terms/a/accreditedinvestor.asp