• The Dodd-Frank Act Will Change the “Accredited Investor” Net Worth Threshold for a Natural Person
  • August 4, 2010 | Author: Dennis J. Brennan
  • Law Firm: Saul Ewing LLP - Philadelphia Office
  • The federal securities laws and regulations provide a relatively streamlined, inexpensive mechanism for companies to issue securities to investors in an offering, as long as most or all of the offerees are “accredited investors.” For example, an offering of securities that is made only to “accredited investors” and that satisfies certain other requirements can often be completed with minimal delay and legal expense due to the simplified federal regulatory requirements and the pre-emption of state regulatory requirements. These federal regulatory requirements, and the definition of “accredited investor,” are in the SEC’s Regulation D.