The Corporate & Securities Law blog has a great summary on how the Dodd-Frank Wall Street Reform and Consumer Proctection Act will affect the definition of “accredited investor”. The pertinent points are below:
- Net worth of $1 million excludes the value of the investor’s primary residence.
- The SEC can revise the definition for the first four years following enactment of the act.
- Within the next four years the definition of accredited investor must include an increase to the net worth threshold.
- SEC is required to review the definition of net worth every four years.
- the net worth amount will not be go below a $1 million floor.