Securities Law Updates | New Statutes, Regulations and Rules
January 27, 2012
SEC Adopts Net Worth Standard for Accredited Investors Under Dodd-Frank Act
Net Worth Standard for Accredited Investors Under Dodd-Frank Act
SEC No. 2011-274, 17 CFR PARTS 230, 239, 270, and 275 , Release Nos. 33-9287; IA-3341; IC-29891; File No. S7-04-11, RIN 3235-AK, 12/21/2011
The Securities and Exchange Commission has amended its rules to exclude the value of a person’s home from net worth calculations used to determine whether an individual may invest in certain unregistered securities offerings.
The changes were made to conform the SEC’s definition of an “accredited investor” to the requirements of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
Under the amended rule, the value of an individual’s primary residence will not count as an asset when calculating net worth to determine “accredited investor” status. The amendments also clarify the treatment of borrowing secured by a primary residence…
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