SEC Proposes Change to Accredited Investor Definition
For investment vehicles that require accredited investors (e.g., hedge funds, various partnerships, etc), the SEC is proposing raising the net worth requirement from $1 million to $2.5 million and that number can’t include the residence.
Here is an excerpt.
Amendments to Private Offering Rules under the Securities Act of 1933. The proposals would define a new category of accredited investor that would apply to offers and sales of securities issued by hedge funds and other private investment pools to natural persons. The proposed definition would include any natural person who (a) meets either the net worth test or income test specified in rule 501(a) or rule 215, as applicable, and (b) owns at least $2.5 million in investments, as defined in the proposed rules.
This entry was posted by David on December 15, 2006 at 2:50 pm, and is filed under Uncategorized. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.