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 buyers, holders in good standing of a Sequence 7, Sequence 65, or Sequence 82 license. The amendments additionally up to date the definition of accredited investor to incorporate, with respect to investments in non-public funds, pure individuals who’re “educated staff” as outlined in Rule 3c(5)(a)(4) of the Funding Firm Act of 1940. This modification might show vital for personal funds with beneath $5 million in property beneath administration which want to enable sure staff to take part within the non-public fund’s providing.
The SEC’s launch will be discovered right here: https://www.sec.gov/information/press-release/2020-191.
The Closing Rule adopting such amendments will be discovered right here: https://www.sec.gov/guidelines/remaining/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 into efficient on December 8, 2020.
This text is for common info solely. The data offered shouldn’t be construed to be formal authorized recommendation nor the formation of a lawyer/consumer relationship.
