SEC Amends ‘Accredited Investor’ Definition Seeking to Expand Private Capital Raising

On Aug. 26, 2020, the U.S. Securities and Exchange Commission (SEC) adopted amendments to the definition of “accredited investor” in Regulation D  under the Securities Act of 1933, as amended (Securities Act), which are expected to expand the pool of investors eligible to invest in private securities offerings. The “accredited investor” definition is one of the principal tests for determining who is eligible to participate in private offerings, which are typically conducted by privately held companies and utilized to raise start-up capital for small businesses.