SEC Proposes Net Worth Standard for Accredited Investors Under Dodd-Frank Act

Securities Exchange Commission

The SEC has voted to propose amendments to the accredited investor standards in its rules under the Securities Act to reflect the requirements of Section 413(a) of the Dodd-Frank Act. The proposed amendments would exclude the value of an individual's primary residence in calculating net worth when determining accredited investor status. The amendments also would clarify the treatment of any indebtedness secured by the residence in the net worth calculation.

Document Number

File No. S7-04-11

Date

January 25, 2011

Cross References (links may require a Cabinet subscription)

Section 413(a) of the Dodd-Frank Act

Rule 144(a)(3)(viii), Rule 155(a), Rule 215, and Rule 501(a)(5) of Regulation D of the general rules under the Securities Act

Rule 500(a)(1)7 of Securities Act form rules

Form D8 under the Securities Act