• Net Worth Standard for Accredited Investors: SEC Adopts Amendments to the Definition of “Accredited Investor” Under the Securities Act Pursuant to Dodd-Frank Section 413(a)
  • December 27, 2011
  • Law Firm: Sullivan Cromwell LLP - New York Office
  • On December 21, 2011 the SEC adopted amendments to the “accredited investor” definitions in Regulation D and Rule 215, to exclude the value of a person’s primary residence for purposes of determining whether the person qualifies as an “accredited investor” on the basis of having a net worth in excess of $1 million. This change to the net worth standard was effective upon enactment of the Dodd- Frank Wall Street Reform and Consumer Protection Act on July 20, 2010, but Section 413(a) of that Act also required the SEC to revise its Securities Act rules to reflect the new standard.