Client Alert: SEC Adopts Massive Changes to “Accredited Investor” Definition

It is official—the “accredited investor” definition, which has not changed significantly since its enactment almost 40 years ago, has been massively upgraded. On August 26, 2020 the Securities and Exchange Commission (“SEC”) adopted its final rule which fundamentally changes and broadens the standards for qualifying as an “accredited investor.” The final rule also makes corresponding changes to the “qualified institutional buyer” definition in Rule 144A. The following Client Alert, written by Freeborn Partner Anthony Zeoli, is a summary of some of the amendments included in the final rule.

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