Accredited Investor (Securities & Capital Markets Glossary)

Summary

Note: The definition of “accredited investor” was amended effective December 8, 2020. The amendments, among other things, add new categories of natural persons that may qualify as accredited investors (based on certain professional certifications or designations or other credentials or their status as a private fund’s “knowledgeable employee”) and expand the list of entities that may qualify as accredited investors. The amendments also permit “spousal equivalents” (a cohabitant occupying a relationship generally equivalent to that of a spouse) to pool finances for the purposes of qualifying as an accredited investor. For more information, see Amending the "Accredited Investor" Definition, SEC Release Nos. 33-10824; 34-89669 (August 26, 2020) (2020 SEC LEXIS 4000), SEC Amends Definitions of Accredited Investor and Qualified Institutional Buyer, and SEC Adopts Amendments to the Definitions of "Accredited Investor" and "Qualified Institutional Buyer": Client Alert Digest.