SEC Asks About Changing Accredited Investor Rule; Comments Pour In
October 2, 2019 by Ginger Szala
Changing regulations brings out the passion in people as more than 130 individuals, firms and associations responded to the Securities and Exchange Commission’s request for comments on its Concept Release on Harmonization of Securities Offering Exemptions. The deadline for comments was Sept. 24, and though several addressed everything from private fund offerings to crowdfunding, many of the writers had comments on the SEC’s question on whether to relax the “accredited investor” rule of Regulation D.
The rule affects many other aspects discussed in the concept release, in which the SEC proposes several exemptions that would help capital fundraising. “We believe our capital markets would benefit from a comprehensive review of the design and scope of our framework for offerings that are exempt from registration,” states the SEC. “More specifically, we also believe that issuers and investors could benefit from a framework that is more consistent and addresses gaps and complexities.”
One discussion the SEC brings up in its expansive release is “If we were to permit an investor advised by a registered financial professional to be considered an accredited investor, should we consider any other investor protections in these circumstances?