Exam Alert: SEC modifies accredited investor standard based on Dodd-Frank

The SEC has changed its net worth standards for accredited investors to conform to provisions of the Dodd-Frank Act. The change stipulates that the value of an investor’s primary residence may not be used when calculating net worth to determine whether the person is an accredited investor on the basis of having a net worth of over $1 million. The change will be effective 60 days after publication in the Federal Register. Continue reading

The SEC has changed its net worth standards for accredited investors to conform to provisions of the Dodd-Frank Act.  The change stipulates that the value of an investor’s primary residence may not be used when calculating net worth to determine whether the person is an accredited investor on the basis of having a net worth of over $1 million.  The change will be effective 60 days after publication in the Federal Register.

An accredited investor is allowed to participate in certain unregistered limited private offerings.  This SEC website shows the standards that determine who qualifies as an accredited investor.

Source: SEC Release 2011-274

This alert applies to the Series 6, Series 7, Series 24, Series 62, Series 79, and Series 82.