SEC Adds Knowledgeable Issuer Employees to List of Accredited Investors in Private Placements
By EsqSocial Corporation 20/10/20
Initially, the Securities and Exchange Commission’s (SEC) definition of “accredited investor” under Rule 501 of Regulation D (Reg D) took a similar approach to Hess. The accredited investor definition focused on investor financial wherewithal. Most investors were accredited because of their net worth or income (for individuals) or their total assets (for business entities). For non-accredited investors, there was a concept of “sophistication, which is similar to competence under Hess’ theory....
By: Whitman Legal Solutions, LLC