The SEC Thinks More People Should Be Able to Invest in Alternatives

The regulator still does not address whether a certain threshold of income or net worth translates to investor sophistication, however.

The U.S. Securities and Exchange Commission (Zach Gibson/Bloomberg)

The U.S. Securities and Exchange Commission

(Zach Gibson/Bloomberg)

The Securities and Exchange Commission is once again proposing to amend its definition of what it means to be a so-called accredited investor, the term for investors deemed to have sufficiently high income to invest in lightly regulated private-market funds.

If approved, the amendment would expand the potential pool of people who qualify to invest in hedge funds, private equity funds, venture capital funds, and other private investment pools.

“The

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