Comments on: Accredited Investors under the Restoring American Financial Stability Act

By: The Changing Standard for an Accredited Investor | Compliance Building

The Changing Standard for an Accredited Investor | Compliance Building — Mon, 23 May 2011 13:09:52 +0000

[...] Senate version of the bill would have increased both amounts. If you use the CPI index, the amounts would more than [...]

By: Dodd Bill, Private Placements and Accredited Investors | Compliance Building

Wed, 19 May 2010 19:58:46 +0000

[...] Accredited Investors under the Restoring American Financial Stability Act – prior post Thanks for visiting. You can subscribe and have future articles sent to you. [...]

By: Restoring American FInancial Stability Act of 2010 | Zak Forsman

Restoring American FInancial Stability Act of 2010 | Zak Forsman — Mon, 17 May 2010 22:55:35 +0000

[...] http://www.compliancebuilding.com/2010/04/06/accredited-investors-under-the-restoring-american-finan... [...]

By: Doug Cornelius

Doug Cornelius — Fri, 30 Apr 2010 13:16:43 +0000

Scott Shane did some analysis for Business Week on the effect of the changes: http://www.businessweek.com/smallbiz/content/mar2010/sb20100318_367600.htm

He found that the number of people qualified as accredited investors would drop “77%, from 4.5 million individual filers who earned $200,000 or more to 1.04 million individual filers who earned $500,000 or more.”

On the other hand, it seems strange that the financial thresholds have remained unchanged for almost 20 years. In 1982 approximately 1.9% of all U.S. households qualified as accredited under those thresholds, representing approximately 1.5 million households. By 2003, the number of accredited households had grown to 9.5 million, representing approximately 8.5% of all households. [http://wistechnology.com/articles/7332/]

Personally, I think this is more of a technical fix than a direct response to the recent financial panic.

By: Mark Buffington

Mark Buffington — Thu, 29 Apr 2010 23:10:06 +0000

This proposed legislation will devastate economic innovation from start-ups and early-stage businesses. This is the part of the economy that is not tainted by the smell of Wall Street. Why is this change being pushed?

By: Doug Cornelius

Doug Cornelius — Sat, 10 Apr 2010 20:58:16 +0000

That’s how I read that amendment. There were a series of these added to the act in the House Financial Services Committee.

By: William Carleton

William Carleton — Thu, 08 Apr 2010 22:13:18 +0000

Doug, great stuff as always, thank you. On the point that the Private Fund Investment Advisers Registration Act passed by the House, that it requires an increase in “the asset levels,” does that pertain directly to the definition of “accredited investor” for Reg D purposes?