SEC Modernizes the Accredited Investor Definition
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Re: SEC Modernizes the Accredited Investor Definition
#2Matt Levine would be having a field day today. I hope he's having a nice time off.
Re: SEC Modernizes the Accredited Investor Definition
#3The two big changes:
1. permitting natural persons who have "professional certifications" or "credentials issued by an accredited educational institution".
2. include as accredited investors, with respect to investments in a private fund, natural persons who are “knowledgeable employees” of the fund.
Most of the other changes fill in gaps that shouldn't have existed: expanding the definition of spouse and adding orgs with >$5MM assets (including tribes, family offices, etc.). YC relevant: "demo days" will not constitute a general solicitation.
Overall a welcome change. I assume that they'll use an existing set of professional certifications in finance, which tend to require non-trivial self-study, so it'll probably also create a market for short educational programs offered by accredited institutions.
Re: SEC Modernizes the Accredited Investor Definition
#4Too bad they didn't adopt the "Dumb investment certificate" [1] instead.
[1] https://www.bloomberg.com/opinion/articles/2018-09-24/earnin...
Re: SEC Modernizes the Accredited Investor Definition
#5Did they really not have anything except a wealth test previously? Nothing for people working in the industry etc?
Re: SEC Modernizes the Accredited Investor Definition
#6[deleted]
Re: SEC Modernizes the Accredited Investor Definition
#7Did they really not have anything except a wealth test previously? Nothing for people working in the industry etc?
Nope!
Re: SEC Modernizes the Accredited Investor Definition
#8The two big changes: 1. permitting natural persons who have "professional certifications" or "credentials issued by an accredited educational institution". 2. include as accredited investors, with respect to investments in a private fund, natural persons who are “knowledgeable employees” of the fund. Most of the other changes fill in gaps that shouldn't have existed: expanding the definition of spouse and adding orgs…
Do you think "credentials issued by an accredited educational institution" would include things like an MBA? Or even a BA in Business?
Re: SEC Modernizes the Accredited Investor Definition
#9The two big changes: 1. permitting natural persons who have "professional certifications" or "credentials issued by an accredited educational institution". 2. include as accredited investors, with respect to investments in a private fund, natural persons who are “knowledgeable employees” of the fund. Most of the other changes fill in gaps that shouldn't have existed: expanding the definition of spouse and adding orgs…
Do you think "credentials issued by an accredited educational institution" would include things like an MBA? Or even a BA in Business?
The SEC's phrasing is somewhat misleading. The amendments give them the right to designate some kinds of educational credentials as sufficient, but they haven't actually done so; the only credentials designated right now are a handful of securities licenses.
Re: SEC Modernizes the Accredited Investor Definition
#10The two big changes: 1. permitting natural persons who have "professional certifications" or "credentials issued by an accredited educational institution". 2. include as accredited investors, with respect to investments in a private fund, natural persons who are “knowledgeable employees” of the fund. Most of the other changes fill in gaps that shouldn't have existed: expanding the definition of spouse and adding orgs…
Do you think "credentials issued by an accredited educational institution" would include things like an MBA? Or even a BA in Business?
In theory, the SEC could decide to count those. In practice, that's basically unthinkable.