Hedge Funds Group Wants Accredited Investor Definition Changed

The HFA told the committee that the goal of protecting investors can be “better achieved through alternative means,” such as a knowledge- or education-based standard, a requirement that a non-sophisticated investor engage an independent registered investment professional to review and approve the investment, or limiting the maximum percentage of net worth that any investor may contribute.

The HFA noted its support for the Jumpstart Our Business Startups (JOBS) Act, which was passed with the intent of making capital raising easier for growing businesses and private investment funds. “Any restriction on the definition of ‘accredited investor’ that is arbitrarily based on a net-worth criteria would in our opinion undermine the intent and objective of the JOBS Act,” HFA said.