- The SEC voted Wednesday to approve a proposal expanding its definition of accredited investors to include holders of an entry-level stockbroker’s license, “knowledgeable employees” of nonpublic firms and others, The Wall Street Journal reported.
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- The vote also opened up to the possibility of further widening the category to holders of other credentials. Until now, investors could be considered accredited if they had $1 million in net assets, not counting their primary residence, or at least $200,000 in annual income.
- The SEC’s decision to name some credentials as a measure of financial literacy is likely to prompt other groups, including chartered financial analysts to holders of law degrees and MBA, to seek accredited-investor status, according to the report.
- The decision is the most recent move to give managers of private-equity firms, hedge funds and aspiring tech unicorns access to new investors. In June, the Labor Department allowed employee 401(k) plans to incorporate private investing into diversified retirement funds.
