On Aug. 26, 2020, the Securities and Exchange Commission adopted amendments to its Regulation D to cautiously expand the definition of “accredited investor” in the Commission’s rules. The change will give additional categories of investors access to certain private offerings of securities that rely upon Regulation D.1 The Commission also made changes to allow some other entities to qualify as accredited investors. The changes become effective 60 days after publication in the Federal Register.

Read the full GT Alert, “SEC Amends the ‘Accredited Investor’ Definition.”

1 Regulation D has always allowed a small number of persons who are “non-accredited investors” to make investments under the rule. However, the added complications of sales to such persons often caused issuers to forgo sales to non-accredited investors.