On Dec. 21, 2011, the Securities and Exchange Commission (SEC) issued a final rule (the Rule) amending the Accredited Investor Standard in the SEC’s rules under the Securities Act of 1933.

These changes were required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) and conform the SEC’s rules to the changes made to the Accredited Investor Standard when the Dodd-Frank Act was signed into law on July 21, 2010.

The Dodd-Frank Act changed the Accredited Investor Standard by excluding the value of a natural person’s primary residence in calculating whether he or she meets the $1 million net worth test for qualifying as an Accredited Investor.

Source: Investment Management Alert
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