NASAA’s Letter To The SEC Urging A Higher Accredited Investor Threshold

Posted on November 8, 2010 by Joe Wallin

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.

About Joe Wallin

Joe Wallin focuses on emerging, high growth, and startup companies. Joe frequently represents companies in angel and venture financings, mergers and acquisitions, and other significant business transactions. Joe also represents investors in U.S. businesses, and provides general counsel services for companies from startup to post-public.
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