Pendulum could swing back on accredited investor definition (Law360)

As part of its review on rules surrounding private offerings, the SEC is taking a hard look at tightening the definition of an accredited investor. Where the previous administration sought to loosen requirements on the types of individuals and entities that would qualify, the current SEC is taking a more restrictive stance, explains Amy Lynch, FrontLine’s Founder and President. Part of a renewed focus by the SEC on investor protection, accredited investor thresholds are being reviewed as part of a broader push for more oversight on the risks that private offerings may pose. One item that is likely to have greater consensus among the SEC Commissioners is updating the individual income and net worth minimum criteria for accredited investors so that they are adjusted for inflation. See Law360 (subscription required), “SEC Could Tighten Eligibility For Private Market Investors“