SEC Modernizes Definition of Accredited Investor and Qualified Institutional Buyer, Allowing Greater Pool of Investors to Participate in Private Securities Offerings
August 31, 2020 - The SEC amended and broadened the definitions of “accredited investor” and “qualified institutional buyer” to allow a larger pool of potential investors to participate in private securities offerings under the Regulation D safe-harbor registration exemption and to participate in secondary sales under Rule 144A. The amendments were adopted along party lines, with the dissenting commissioners objecting that the Commission did not also raise the existing accredited investor income or net worth thresholds which were last set in 1982.
The following client alert examines these revised definitions.
PDF of the Client Alert: SEC Modernizes Definition of Accredited Investor and Qualified Institutional Buyer, Allowing Greater Pool of Investors to Participate in Private Securities Offerings.
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