The SEC met today to consider a recommendation that it amend the definition of “accredited investor” in its rules to conform to with requirements under the Dodd-Frank Act.

Under Current Securities Act rules, individuals must have a net worth of at least $1 million, alone or together with their spouse.  Individuals and entities who qualify as “accredited investors” are eligible to participate in certain private and limited offerings that are exempt from Securities Act registration reqs. 

Under Dodd-Frank Act, the "net worth" calculation excludes the value of the person’s primary residence. 

Accordingly, the SEC's revised rule will reflect the more restrictive Dodd-Frank standards.  More details to follow.

    SEC Staff Credits.   Meredith Cross, CorpFin Director, and staff members:  Gerry Laporte, Tony Barone, Mauri Osheroff, Jennifer Zepralka, Karen Wiedemann.  From General Counsel’s Office:  David Fredrickson, Dorothy McCuaig.

[M. Schapiro Speech, 1/25]