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SEC's 'Accredited Investor' Update Could Bring Unintended Consequences — SEC Roundup

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Welcome to SEC Roundup, a bi-monthly video series by Paul Hastings partners and former Securities and Exchange Commission Senior Trial Counsels Nick Morgan and Tom Zaccaro exploring current SEC topics with thought leaders and industry experts.

The SEC, according to its regulatory agenda, plans to seek comment in April on updates to the financial thresholds in its “accredited investor” definition as part of potential changes to the exempt offering rules.

Possible unintended consequences may result from any update.

In this episode, Morgan and Zacarro sat down with Brittany Davis of Backstage Capital, a venture capital fund that invests in early-stage startups whose founders identify as women, LGBTQ and people of color.

Brittany and the SEC Roundup crew discuss the SEC’s accredited investor rule and how restricting availability of certain private investments will exclude ordinary investors who may otherwise not have high levels of income or access. Touching on themes of diversity and inclusion in the private investment space, the team takes a look at the rule and how it affects investors like Backstage Capital.


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