This Note examines potential changes to the accredited investor
definition and how these changes will likely impact entrepreneurs and small businesses relying on the NC PACES Act.
We will continue to deliver quality product for the portfolios of large institutional players and the thousands of accredited investors
who invest in our loans every day.
2187 reflected the House's impatience with the SEC's failure to revise the accredited investor
definition to increase the potential pool of investors for the private placement market.
Vass said that his economic research on accredited investor
crowdfunding leads him to the conclusion that the new method of raising capital will require extensive front end marketing and media relations for small firms that want to undertake a private placement.
When Congress removed the ban on general solicitation" under Rule 506 offerings under Regulation D, Roper said, the accredited investor
definition "divide in the public and private markets became more important.
Under the JOBS Act, the SEC is required to amend its roles so that general solicitation and advertising of Rule 506 offerings will be permitted, so long as sales are made only to accredited investors
, which will certainly make it easier for companies to attract attention and increase the potential pool of investors.
The SEC is to apply three factors in determining whether to modify the definition of accredited investor
On December 27, 2006, the Commission released proposed revisions to its accredited investor
One area, White said, "is actually in the area that is regulated, which is the reasonable efforts that issuers have to make to determine that who they're selling to are accredited investors
and either just not doing it at all or doing a job that clearly doesn't pass muster.
Additionally, so-called investor protection advocates may prevail in ascribing a more restrictive definition of an accredited investor
Endowments, corporations and employee benefit plans can also qualify for accredited investor
status if the plan has at least $5 million in assets; that number drops to $3 million for charitable organizations.