SEC Advisers Discuss Accredited Investors Definition Today

As the United States Securities and Exchange Commission (the "Commission") continues its efforts to modernize its Accredited Investor definition, it announced that its Advisory Committee on Small and Emerging Companies (the "ACSEC") will devote its agenda for the meeting scheduled today, December 17, 2014, in Washington D.C., to this very issue. Demonstrative of the Commission's interest in this timely issue, the ACSEC meeting follows a recent and similar dialogue held on October 9th, 2014 at the Commission's meeting of its Investor Advisory Committee (the "IAC"). Save for a mid-meeting closed administrative session, the agenda for the ACSEC's meeting today is focused exclusively on updating and enhancing the Accredited Investor definition and the Commission has elected for the meeting to take a methodical approach by: (i) reviewing the background of the definition; (ii) allowing for presentations by Marianne Hudson, Executive Director, Angel Capital Association and David M. Certner, Legislative Counsel and Legislative Policy Director, AARP; (iii) providing for the Committee's discussion on the matter; and, finally (iv) allotting time for its "Next Steps" in advancing its determination.

At the October 9th meeting, the IAC urged, among other things, that the Commission depart from its historical emphasis on financial assets in defining an Accredited Investor and rather consider criteria that more effectively determines an investor's financial experience and sophistication. A further discussion of the IAC meeting is set for in the Sadis & Goldberg Alert, below.

If you would like to read our recent Alert, please click on the link below:

Cheryl Spratt