On August 26, 2020, the Securities and Change Fee (“SEC”) issued a press launch indicating that it had adopted amendments to the definition of “accredited investor.” The amendments, amongst different issues, added to the listing of people who qualify as accredited traders, holders in good standing of a Collection 7, Collection 65, or Collection 82 license. The amendments additionally up to date the definition of accredited investor to incorporate, with respect to investments in personal funds, pure individuals who’re “educated staff” as outlined in Rule 3c(5)(a)(4) of the Funding Firm Act of 1940. This transformation might show important for personal funds with beneath $5 million is property beneath administration which want to enable sure staff to take part within the personal fund’s providing.
The SEC’s launch could be discovered right here: https://www.sec.gov/news/press-release/2020-191.
The Closing Rule adopting such amendments could be discovered right here: https://www.sec.gov/rules/final/2020/33-10824.pdf.
Replace: On October 9, 2020, the SEC printed the Closing Rule within the Federal Register. The adjustments to the definition of Accredited Investor will turn out to be efficient on December 8, 2020.
This text is for common data solely. The knowledge offered shouldn’t be construed to be formal authorized recommendation nor the formation of a lawyer/shopper relationship.