SEC Delivers Recommendations on Accredited Investor Standard

The SEC recently delivered recommendations originally adopted by its Small Business Capital Formation Advisory Committee on February 10, 2022. During this meeting of SEC minds, the committee discussed the current definition of what makes someone an “accredited investor.” The subject itself is challenging- creating a workable definition that takes into account the complex factors at play is no easy task. Regulators need to balance the need to protect investors while still doing their best to facilitate capital formation and encourage the creation of investment opportunities. 

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