Last week, the NASAA wrote a letter to the SEC urging the SEC to tighten up the accredited investor standards as part of the Dodd-Frank rule making process.
It appears that the SEC is going to act early next year.
You can view of copy of the NASAA’s letter here.
The key part of the letter is this:
In particular, the accredited investor test should require that, in addition to satisfying the current financial thresholds for natural persons, the investor must have at least $1,000,000 in investments to qualify as an accredited investor.
I believe that this change, if adopted by the SEC, would have a pretty dire impact on angel investing. Let’s hope the SEC does not even propose it as part of its rule making.