SEC Amends Definition of “Accredited Investor”

The SEC has issued a final rule, Amending the “Accredited Investor” Definition. The final rule amends the Securities Act of 1933 by (1) revising the definition of “accredited investor” in Rule 501(a), (2) replacing the existing definition of this term in Rule 215 with a cross-reference to the definition in Rule 501(a), and (3) updating the definition of “qualified institutional buyer” in Rule 144A.

For more information, see the press release as well as statements from SEC Chairman Jay Clayton and Commissioners Hester M. Peirce, Elad L. Roisman, Allison H. Lee, and Caroline Crenshaw.