SEC Proposes Rule Changes And Seeks Comments On Additional Accredited Investor Pathways

On Sept. 30, the Securities and Exchange Commission (SEC) voted to propose changes to the definition of “accredited investor” under Rule 501(a)(10) of Regulation D under the Securities Act of 1933, as amended (Securities Act). The SEC is considering six new pathways for qualification as an “accredited investor” to expand access to individuals otherwise unqualified to access private securities offerings.

Specifically, the SEC issued notices seeking public comment on the following proposed pathways:

• Passing an “accredited investor” exam to be developed by the Financial Industry Regulatory Authority (FINRA); and
• Holding in good standing one of the following:
  • a license as a Certified Public Accountant (CPA);