SEC Expands Accredited Investor Definition

By: Bryan K. Prosek, John R. Chadd

Published: September 8, 2020

The SEC has expanded the definition of accredited investor to modernize it and enable more investors to access private offerings. “Accredited investor” is defined in Rule 501(a) of Regulation D under the Securities Act of 1933. Regulation D exempts from SEC registration certain securities issued in private offerings that meet the requirements of Regulation D. The expanded definition includes the following:

These changes take effect 60 days after publication in the Federal Register.

Steptoe & Johnson PLLC has an experienced group of securities attorneys who can help you with any state or federal compliance issues. Please contact a member of the Securities Team with any questions on this alert.

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