The SEC has proposed expanding the definition of “accredited investor” to enable more qualified individuals and institutions to participate in private markets. These include individuals who possess the Series 7 (General Securities Representative Qualification Examination), 65 (Uniform Investment Adviser Law Examination) and 82 (Private Securities Offerings Representative Examination) securities licenses administered by Finra. The proposal would also expand the list of entities that may qualify as accredited investors by, among other things, allowing any entity that meets an investments test to qualify. The dollar thresholds to qualify as an accredited investor would not be amended. Do you agree that the definition of accredited investor should be expanded?
The case presents a cautionary tale for FAs whose clients fail to fill out beneficiary forms.