The Securities and Exchange Commission (SEC) has proposed a “Net Worth Standard for Accredited Investors” rule that would amend the Securities Act of 1933. This amendment is required under Section 413 of the Dodd-Frank Act.
The new rule requires the value of a person’s “primary residence” to be excluded when calculating net worth to see if an investor qualifies as “accredited.”
This new net worth standard was effective when Dodd-Frank became law but had required the SEC to revise the Securities Act to reflect this change. The sixth item below in the SEC definition of accredited investor is what the proposed rule would change.
From the SEC’s website, “federal securities laws define the term accredited investor in Rule 501 of Regulation D as:
The SEC comment period ends March 11.