Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
Acting SEC Chairman Michael Piwowar repeated his call for an overhaul of monetary restrictions that keep some people from participating in private, unregistered offerings.
Speaking at a Feb. 24 conference in Washington, the Republican reiterated his concerns about the usefulness of the “accredited” investor regime, which uses income and net worth to determine whether individuals can invest in start-up companies, hedge funds and other high-risk investments.
An individual must have $200,000 in net income over the past two years or $1 million in net worth that excludes a primary residence. The income threshold is $300,000 for married couples.
“In my view, there is a glaring need to move beyond the artificial distinction between ‘accredited’ and ‘non-accredited’ investors,” he said at the Practising Law Institute’s annual “SEC Speaks” gathering. “I question the notion that non-accredited investors are truly protected by regulations that prevent them from investing in high-risk, high-return securities available only to the Davos jet-set.”
Then-SEC Chairman Mary Jo White in 2016 directed her staff to prepare recommendations on changing the accredited investor definition. At the time, Piwowar called accredited and non-accredited investors “arbitrary categories.”
White’s directive came after the commission’s Investor Advisory Committee recommended a sophistication test to determine whether someone is an accredited investor. Under the Dodd-Frank Act, the SEC is required to periodically review the definition.
It’s unclear whether Piwowar will take any action related to accredited investors as acting chairman. He quickly left the conference without taking questions from reporters.
To contact the reporter on this story: Andrew Ramonas in Washington at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)