SEC's Small Business Capital Formation Advisory Committee, Chaired by Partner Carla Garrett, Submits Recommendations to SEC Chair Gary Gensler regarding the definition of Accredited Investor

Partner Carla Garrett, who serves as the Committee Chair of the U.S. Security and Exchange Commission’s (SEC) Small Business Capital Formation Advisory Committee, submitted a letter on behalf of the Committee to The Honorable Gary Gensler, SEC Chair, recommending no increase to the current financial thresholds in the definition of “accredited investor” as set forth in Securities Act Rule 501(a) of Regulation D.  

This recommendation, among others noted in the letter, seeks to mitigate any changes to the definition that would shrink the pool of currently accredited investors or limit access to early-stage capital. The Committee also recommends alternative methods for investors to qualify as sophisticated and that the Commission consider creating a new exemption for local and/or micro-investments that would not be limited to accredited investors.

Review the list of Committee members and the full letter of recommendations.