BREAKING SEC Modifies Accredited Investor Qualifications

[Andrew Hogan]

Just released today. Aug. 26, 2020

https://www.sec.gov/news/press-release/2020-191

•   In conjunction with the adoption of the amendments, the Commission designated by order holders in good standing of the Series 7, Series 65, and Series 82 licenses as qualifying natural persons.  This approach provides the Commission with flexibility to reevaluate or add certifications, designations, or credentials in the future.
• include as accredited investors, with respect to investments in a private fund, natural persons who are “knowledgeable employees” of the fund;
• Additional ways to qualify in press release.

What’s Next?

The amendments and order become effective 60 days after publication in the Federal Register

How do you think this is going to change the game for syndications and passive investors?

Personally, I could see a lot of people taking their Series 7, 65, and 82 exams in order to invest in more deals with solid operators that they previously weren't able to partner with.

[Russell Brazil]

The pool of people who are not accredited investors that want to invest in things that require you to be, isnt a very large pool of people. So I do not really any measurable change.