Dear Reader,
Neil here, with an important update.
The Securities and Exchange Commission just made a major change to its “accredited investor” definition.
This new definition could make you eligible to participate in even more investment opportunities, and I wanted to fill you in right away.
Let’s dive in…
Part of the SEC’s job is to determine who is eligible to invest in certain types of securities.
They created the “accredited investor” definition for people or businesses who can deal in securities that may not be registered with the SEC.
In the startup world, this includes Regulation D raises and venture capital.
However, because these securities may not be SEC-registered, they’re inherently riskier. And that’s exactly why the SEC originally restricted them to only those meeting a certain wealth minimum.
(Check out a full breakdown of SEC raise regulations here.)
Currently, accredited investors need to have a net worth of at least $1 million, excluding the value of their primary residence.
They also need to have had an annual individual income of at least $200,000 for at least two years… or a $300,000 combined income with a spouse.
The idea was that people with more capital can handle riskier investment decision-making.
But the definition is about to change…
It allows individuals to qualify based on certain professional knowledge, experience, certifications, or credentials from an accredited institution.
The SEC can determine which credentials are sufficient. Right now, it includes specific license exams, such as the Series 7, Series 65, and Series 82 exams.
In short, if you can demonstrate you’re knowledgeable enough, you may no longer have to meet the original wealth-based requirements to be considered an accredited investor.
The world of accredited investing is full of high-wealth opportunities that will no longer be reserved for people who are already rich.
And a growing population of accredited investors will provide more capital available for startups… fueling even faster growth for many.
We’ll always keep you in the loop of big SEC changes if and when they take effect.
As always, make sure you double-check with the SEC and/or a financial advisor before making any big investment decisions.
Check out the SEC’s full press release here.
In the meantime, stick around for some more exciting updates. We’ve got a lot coming your way soon.
Until next time,
Neil Patel
Neil here, with an important update.
The Securities and Exchange Commission just made a major change to its “accredited investor” definition.
This new definition could make you eligible to participate in even more investment opportunities, and I wanted to fill you in right away.
Let’s dive in…
What Is an Accredited Investor?
The SEC was created to protect investors from overly risky investment decisions and manipulative market practices.Part of the SEC’s job is to determine who is eligible to invest in certain types of securities.
They created the “accredited investor” definition for people or businesses who can deal in securities that may not be registered with the SEC.
In the startup world, this includes Regulation D raises and venture capital.
However, because these securities may not be SEC-registered, they’re inherently riskier. And that’s exactly why the SEC originally restricted them to only those meeting a certain wealth minimum.
(Check out a full breakdown of SEC raise regulations here.)
Currently, accredited investors need to have a net worth of at least $1 million, excluding the value of their primary residence.
They also need to have had an annual individual income of at least $200,000 for at least two years… or a $300,000 combined income with a spouse.
The idea was that people with more capital can handle riskier investment decision-making.
But the definition is about to change…
How Has the Definition Changed?
The new definition expands the range of who can be considered an accredited investor.It allows individuals to qualify based on certain professional knowledge, experience, certifications, or credentials from an accredited institution.
The SEC can determine which credentials are sufficient. Right now, it includes specific license exams, such as the Series 7, Series 65, and Series 82 exams.
In short, if you can demonstrate you’re knowledgeable enough, you may no longer have to meet the original wealth-based requirements to be considered an accredited investor.
The world of accredited investing is full of high-wealth opportunities that will no longer be reserved for people who are already rich.
And a growing population of accredited investors will provide more capital available for startups… fueling even faster growth for many.
We’ll always keep you in the loop of big SEC changes if and when they take effect.
As always, make sure you double-check with the SEC and/or a financial advisor before making any big investment decisions.
Check out the SEC’s full press release here.
In the meantime, stick around for some more exciting updates. We’ve got a lot coming your way soon.
Until next time,
Neil Patel
Awesome. Any tips on which methods are easiest or fastest to obtain Accredited Investor status?
This is good information, but now the question is, how can one simply acquire one of the licenses that would qualify and individual.
How can we I make theses investments?