SEC Proposes Changes to Accredited Investor Definition: Proposed Amendments Would Expand Persons and Categories of Entities that Qualify as Accredited Investors

Sullivan & Cromwell LLP - January 7, 2020
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On December 18, 2019, the SEC issued a release proposing amendments to the definition of “accredited investor” in Rule 501(a) of Regulation D and other of the SEC’s rules that would expand the persons or entities able to participate in the private capital markets.  The proposed amendments are intended to update and improve the definition to identify more effectively institutional and individual investors that have the knowledge and expertise to participate in private capital markets without the additional protections of registration under the Securities Act of 1933.