On December 18, 2019, the U.S. Securities and Exchange Commission (“SEC”) proposed amendments to Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (“Securities Act”), which would expand the definition of “accredited investor” (the “Proposed Rule”). The Proposed Rule aims to permit a greater number of investors to participate in private offerings by, among other things, formally including knowledgeable employees as accredited investors; broadening the accredited investor definition with respect to certain entities, such as family offices and limited liability companies; and extending the definition of accredited investor to include certain licensed professionals.
