In Forbes, Keith Higgins Addresses SEC Proposed Changes to Accredited Investor Designation

In The News
January 22, 2020

In a Forbes article published on Jan. 21, securities and governance practice chair Keith Higgins (Boston) commented, along with other legal and regulatory thought leaders, on the U.S. Securities and Exchange Commission’s proposed changes to the “accredited Investor” status.

The SEC proposal makes some sensible, but modest changes to make the rule work better, but does not address the current thresholds for qualification by income or net worth. The most significant change - extending accredited investor status to individuals holding certain professional licenses - has some logical appeal, but it is not clear whether this change would expand in any meaningful way the universe of potential investors.