Possible SEC Changes Could Affect Pool of "Accredited Investors" for Businesses

The SEC is considering adopting changes to its definition of "accredited investors" that may reduce the pool of accredited investors. While this reduction in the number of accredited investors would not preclude private companies and investment funds from relying upon the traditional exemptions under the securities laws (Rule 506, etc.), it would likely require enhanced informational disclosure to investors because not all offerees would continue to qualify as accredited, along with the resulting increase in legal fees incurred in connection with private placements of securities. Companies and investment funds seeking to raise capital from outside investors need to be sure that their fundraising activities are in full compliance with federal and state securities laws. Likewise, companies and investment sponsors who are considering private placements of securities this year may want to consider accelerating their fundraising sooner rather than later, due to the strong possibility the rules will change.

These issues and an explanation of the SEC recommendations under review are further described in PLDO partner and veteran business attorney, William F. Miller's advisory available by clicking Recommended Changes to Accredited Investor Qualifications Could Complicate Raising Capital from Outside Investors. If you have questions or would like to speak to Attorney Miller about this issue or another business matter, email him at [email protected] or call 866-353-3310. We welcome your comments, questions and suggestions.

Source: Recommended Changes to Accredited Investor Qualifications Could Complicate Raising Capital from Outside Investors

No Comments

Leave a comment
Comment Information

Contact Our Firm And Schedule A Consultation

Work with our experienced team of lawyers. Call 866-353-3310 or email us today to schedule a consultation.

View Office Locations

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Email Us For A Response

Rhode Island
Northwoods Office Park
1301 Atwood Ave.
Suite 215 N
Johnston, RI 02919

Toll Free: 866-353-3310
Phone: 401-824-5100
Fax: 401-824-5123
Map & Directions

One International Place
Suite 1400
Boston, MA 02110

Toll Free: 866-353-3310
Fax: 866-353-5020
Map & Directions

Wells Fargo Plaza
925 South Federal Highway
Suite 715
Boca Raton, FL 33432

Phone: 561-362-2030
Fax: 866-353-5020
Map & Directions

901 Main Street
Suite O
Osterville, MA 02655

Phone: 508-420-7159
Fax: 508-420-7162
Map & Directions

GPS Directions to this office: 555 Valley Street, Providence, RI 02908