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The SEC Amends Accredited Investor and Qualified Institutional Buyer Definitions

Client Alert

The SEC Amends Accredited Investor and Qualified Institutional Buyer Definitions (Westlaw)

Two important points to mention - persons who hold certain professional certifications but do not meet accredited investor net worth/income standards are now within the definition. These are mainly securities professionals who have their Series 7, 65, or 82.

Further, LLCs that have total assets in excess of $5 million and have not been formed for the purpose of acquiring the particular security are now qualifying entities for private placements. 

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