SEC Gives More Investors Access to Private Investing, Hedge Funds

  • 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.
A businessman holds a holographic logo that says "private equity."
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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.

Article printed from InvestorPlace Media, https://investorplace.com/2020/08/sec-gives-more-investors-access-to-private-investing-hedge-funds/.

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