Most of us are aware of the background: Section 415 of the Dodd-Frank Act (2010) required that Congress study criteria in 2013 to determine whether changes should be made to accredited investor definitions. This might include raising the financial thresholds (or recommending other criteria) to qualify for accredited investor status for eligibility to invest in private placement securities.
The General Accounting Office (GAO) is currently conducting this study (to be released in July) and has interviewed a few members of the ACA. We’ve heard some rumors that the GAO will be pressured by NASAA (North Am. Securities Administrators Assoc) to raise the income and net worth thresholds to qualify as an accredited investor. If they do recommend raising the criteria and Congress or the SEC complies, then the new standards could lead to a loss of the majority of angel investors in the U.S. market.
To read the original article: Dodd-Frank Rears its Ugly Head
