[This story previously appeared in Securities Regulation Daily.]
The SEC’s Advisory Committee on Small and Emerging Companies will hold a public meeting via conference call on February 17 to vote on its recommendations to the Commission regarding revisions to the definition of “accredited investor.” Section 413 of the Dodd-Frank Act requires the SEC to review the definition, as applied to nature persons, at least every four years to determine whether adjustments are appropriate for investor protection, in the public interest, and in light of the economy.
Recommendation. At its meeting on December 17, 2014, the committee indicated that the current thresholds for accredited investors work for the most part and emphasized the wish to do no harm in formulating a revised definition. The members supported, however, the expansion of the definition to include financially savvy investors that may not meet the income and net worth thresholds. The committee also supported attaching a Consumer Price Index adjustment to the threshold going forward, subject to access to additional data to better understand that segment of the recommendation.
The meeting will begin at 2:00 p.m. Eastern Time. A live audio broadcast of the meeting will be available on the SEC’s website.