'Net Worth' Standard for Accredited Investors Further Amended by US Securities and Exchange Commission
4 January 2012
Mayer Brown Legal Update
The Securities and Exchange Commission has further amended its net worth standard for accredited investors to exclude the value of a primary residence for purposes of determining whether a natural person, either individually or jointly with their spouse, has a net worth in excess of $1 million. The SEC amended the portion of the accredited investor definition that qualifies a natural person investor as accredited based on net worth under both Rule 501 of Regulation D and Rule 215 of the Securities Act. The SEC also adopted technical amendments to Form D and a number of other rules to conform them to the corresponding Dodd-Frank Act requirements.