The SEC's Advisory Committee on Small and Emerging
Companies, co-led by Sara Hanks, met the other day to talk about
how to update the definition of "accredited investor"
following a detailed report issued by the SEC back in December. As
we know, only accrediteds are permitted to invest in certain types
of securities offerings.
The 1982 thresholds in SEC Regulation D say you're
accredited with $200,000 annual income or a $1 million net worth
(now excluding your primary residence). I know my friends will be
mad at me, but if you go to www.dollartimes.com, it tells you that
$200,000 in 1982 dollars is worth $503,244 today after
inflation. Luckily it doesn't appear anyone at the SEC is
proposing increasing the amount that much. And they are also
considering letting you be accredited if you have certain types of
licensing, such as an accountant or financial planner. They also
are considering not increasing the thresholds but limiting the
amount you can invest if you make
