Today the Investment Program Association and the Alternative & Direct Investment Securities Association issued a joint comment letter to the SEC regarding its review of the definition of an Accredited Investor.
The “Dodd-Frank Act” directs the SEC to review the Accredited Investor definition every four years to determine whether the definition should be modified or adjusted for the protection of investors, in the public interest and in light of the economy.
The IPA and ADISA believe that there is no objective, measurable basis for changing the definition at this time. Additionally, we believe that:
- The potential for market disruption and investor harm that might result from changing the definition outweighs any potential investor protection or other public policy benefit.
- Changes to the definition might in fact negatively impact the ability of companies and businesses across the country to raise needed capital for their operation and growth.
I would like to specifically thank our Drafting Committee, including: John Harrison, John Grady, Ryan Kretschmer, Martin Hewitt, Darryl Steinhause, Larry Sullivan and Bill Winn for their valuable contributions. In addition, I would like to express my appreciation to the various IPA committees who provided valuable input throughout the review process.
We will continue to keep our members informed as we move forward on this critical initiativeView Comment Letter