Alerts12.30.19

SEC Proposes to Amend “Accredited Investor” Definition, Expand Pool of Investors Eligible to Invest in Private Offerings

SEC

On December 18, 2019, the Securities and Exchange Commission (SEC) proposed amendments to the definition of “accredited investor” in the SEC’s rules under the Securities Act of 1933, which are expected to expand the pool of investors eligible to invest in private offerings. If the final rules are adopted, this expanded accredited investor definition may provide particular benefits to startups and early-stage companies that rely on private securities offerings to raise much-needed capital.

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