What SEC's Accredited Investor Proposal Means For PE Funds

By Michael Gold and Nicholas Stewart (January 16, 2020, 4:56 PM EST) -- On Dec. 18, the U.S. Securities and Exchange Commission issued a release proposing to change the definition of "accredited investor" under Rule 501(a) of Regulation D of the Securities Act of 1933.[1] One of the reasons offered for this change is to expand investor access to the large number of companies that are choosing to stay private longer.

Is this change effective today? 

No. This was merely a rule proposal, and no change to the rule will be effective until after the SEC issues a formal rule. The SEC set a 60-day comment period and will not issue a formal rule...

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