The Securities and Exchange Commission has adopted amendments to the “accredited investor” definition contained in Rule 501(a) of Regulation D which is one of the principal tests for determining who is eligible to invest in private capital raising transactions. Historically, individual investors who did not meet specific income or net worth tests, regardless of financial sophistication, have been denied the opportunity to participate in such investments.
In announcing the changes, SEC Chairman Jay Clayton said: “For the first time, individuals will be permitted to participate in our private capital markets not only based on their income or net worth, but