{"id":5493,"date":"2013-07-31T00:00:00","date_gmt":"2013-07-31T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/07\/gao_wants_sec_to_look_at_other"},"modified":"2022-05-05T08:31:22","modified_gmt":"2022-05-05T13:31:22","slug":"gao-wants-sec-to-look-at-other","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/","title":{"rendered":"GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor"},"content":{"rendered":"<p>The Government Accountability Office is recommending that the SEC look at eight other criteria for who should qualify as an accredited investor for purposes of the 1933 Securities Act Regulation D Rule 506. The criteria is divided into two categories: understanding financial risk and financial resources. The independent, nonpartisan agency that works for Congress put out its <a href=\"https:\/\/www.gao.gov\/assets\/660\/655963.pdf\">recommendations<\/a> to the regulator on July 18.<\/p>\n<p>Under the 1933 Act, accredited investors can take part in certain private and limited exempt offerings. To qualify as an accredited investor a person needs to have at least $200,000 for each of the last two years or a net worth of $1 million without factoring in his\/her main residence. While market participants that were surveyed agreed that net worth was the most essential criterion, they indicated that having an investment advisor and liquid investments could balance capital formation interests and investor protection.<\/p>\n<p>Investor advocates and state securities regulators consider this criteria to be outdated and they are calling for substantive changes. Even SEC Commissioner Elisse Walter told broker-dealers at a recent gathering that the agency \u201cdesperately\u201d must modify the definition of an accredited-investor.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/\"  title=\"Continue Reading GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Government Accountability Office is recommending that the SEC look at eight other criteria for who should qualify as an accredited investor for purposes of the 1933 Securities Act Regulation D Rule 506. The criteria is divided into two categories: understanding financial risk and financial resources. The independent, nonpartisan agency that works for Congress put [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3761],"tags":[2623],"class_list":["post-5493","post","type-post","status-publish","format-standard","hentry","category-securities-and-exchange-commis","tag-gao"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor &#8212; Investor Lawyers Blog &#8212; July 31, 2013<\/title>\n<meta name=\"description\" content=\"The Government Accountability Office is recommending that the SEC look at eight other criteria for who should qualify as an accredited investor for &#8212; July 31, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor &#8212; Investor Lawyers Blog &#8212; July 31, 2013\" \/>\n<meta name=\"twitter:description\" content=\"The Government Accountability Office is recommending that the SEC look at eight other criteria for who should qualify as an accredited investor for &#8212; July 31, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor &#8212; Investor Lawyers Blog &#8212; July 31, 2013","description":"The Government Accountability Office is recommending that the SEC look at eight other criteria for who should qualify as an accredited investor for &#8212; July 31, 2013","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/","twitter_card":"summary_large_image","twitter_title":"GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor &#8212; Investor Lawyers Blog &#8212; July 31, 2013","twitter_description":"The Government Accountability Office is recommending that the SEC look at eight other criteria for who should qualify as an accredited investor for &#8212; July 31, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor","datePublished":"2013-07-31T05:00:00+00:00","dateModified":"2022-05-05T13:31:22+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/"},"wordCount":541,"keywords":["GAO"],"articleSection":["Securities and Exchange Commission"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/","url":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/","name":"GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor &#8212; Investor Lawyers Blog &#8212; July 31, 2013","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2013-07-31T05:00:00+00:00","dateModified":"2022-05-05T13:31:22+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The Government Accountability Office is recommending that the SEC look at eight other criteria for who should qualify as an accredited investor for &#8212; July 31, 2013","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/gao-wants-sec-to-look-at-other\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"GAO Wants SEC to Look At Other Criteria for Who Qualifies As An Accredited Investor"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1qB","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=5493"}],"version-history":[{"count":4,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5493\/revisions"}],"predecessor-version":[{"id":27300,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5493\/revisions\/27300"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=5493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=5493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=5493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}