The Securities and Exchange Commission has made a key rule change that expands the definition of who qualifies as an accredited investor for private offerings.
The rule change looks beyond just income thresholds and takes into account other measures of financial sophistication, adding new categories of individuals that could qualify as accredited investors including knowledgeable employees of private funds and those holding certain professional certifications.
RMF Founding Partner and past board chairman of the Long Island Angel Network, Michael L. Faltischek, stated “A large number could already be accredited investors.” He also noted that individuals that hold licenses outlined in the rule “may know the rules around buying and selling securities,” but may not know about the angel investment industry itself.
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