SEC Codifies Net Worth Standard For Accredited Investors Adopted By Dodd-Frank Act

On December 21, 2011, the Securities and Exchange Commission (the "SEC") amended its rules to exclude the value of a person's primary residence from net worth calculations used to determine whether an individual qualifies as an "accredited investor." The rule was amended pursuant to the requirements of Section 413(a) of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") which already implemented the change when it became law on July 21, 2010. The amended rules become effective 60 days after publication in the Federal Register.

The Dodd-Frank Act also authorized the SEC to review the definition of "accredited investor" as it applies to natural persons and determine whether other modifications might be necessary. The SEC has concluded that additional modifications are unnecessary at this time. The Dodd-Frank Act requires the SEC to review the "accredited investor" definition in its entirety every four years, commencing in 2014, and