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Updated over 5 years ago, 08/30/2019

User Stats

722
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386
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John Corey
  • London
386
Votes |
722
Posts

Achieving USA accredited investor status?

John Corey
  • London
Posted

I am familiar with the tests that involve one's annual income or one's net worth.

While researching the topic, I saw the following in Investopedia. 

In 2016, the U.S. Congress modified the definition of an accredited investor to include registered brokers and investment advisors. Also, if a person can demonstrate sufficient education or job experience showing his professional knowledge of  securities, he too can qualify to be considered an accredited investor.

I added the bold and italic.

I have found the Investopedia site pretty good in the past. That said, I can not find the same message on the SEC site. I might have missed something on the government site.

I know that in the UK, the regulator there, the FCA, has a path which allows a non-accredited investor (the UK term: restricted retail) to progress to accredited (the UK term: sophisticated). In the USA, other than income or high net worth, how can a person who is not working in the financial sector and is not a sponsor or similar move from non-accredited to accredited? If the Investopedia entry is correct, there is a path based on building competence and or experience. I can see the logic of allowing this transition for people who have somehow demonstrated they know what they are doing.

Any comments or suggestions?

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