
SEC due to review the definition of accredited investor - equityzen
http://equityzen.com/blog/accredited-investor-standards-SEC-review
======
Zikes
Sorry to borrow a page from Reddit, but can someone explain like I'm five why
I'm not allowed to invest my own money in whatever venture I see fit, just
because I'm not rich?

I've already "invested" money in Pebble, Reading Rainbow, and a few other
business ventures I've seen potential in, but I'm not allowed to benefit from
those investments in certain ways because, why, exactly? For my own
protection?

~~~
larrys
"just because I'm not rich?"

Yes for your own protection.

Because if you don't have money then the rest of society often becomes the
"clean up the mess" of last resort if you make a mistake using one of your
last dimes to invest in a potentially risky venture.

"but I'm not allowed to benefit from those investments in certain ways"

The chance of "gambling" is much higher if someone perceives a payout. Not to
say there aren't many ways that people throw out their money (QVC, Casinos
etc.) but those are grandfathered and part of a different discussion. (And the
fact that they are allowed whether the same or different doesn't mean
something else should also be allowed).

~~~
jeangenie
> if you don't have money then the rest of society often becomes the "clean up
> the mess" of last resort

Case in point[1]. I guess it's fine when Wall Street does it.

[1]
[http://en.wikipedia.org/wiki/Emergency_Economic_Stabilizatio...](http://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008)

------
will_brown
The Government seems to have completely forgotten about the JOBS Act[1], which
was designed to create a regulatory exemption for crowdfunded investment,
democratizing investment allowing everyone an opportunity. Yet instead it
appears they want to raise the barrier to entry for investors and limit limit
opportunities for start-ups. I mean regulation is needed, we don't want fly by
night operations scamming would be investors, but if true this is disgusting.

[1][http://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startups...](http://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startups_Act)

------
gojomo
Given that there's been...

• …an immense explosion in available knowledge; and…

• …many new ways for non-accredited investors to invest and lose all their
money in highly-leveraged public equities, real-estate, foreign-exchange, and
other vehicles; and…

• …no appreciable complaints from existing accredited investors that they wish
they'd been prevented from investing their own money in private equities;

...thus the SEC _must_ be looking into reducing the thresholds, in the spirit
of the JOBS Act, to let more Americans invest in innovative upstarts? Right?
Right?

------
Karunamon
I was hoping this meant that they would lower the bar, but instead they think
it's going to be being raised even higher, meaning that existing VCs could
close their accreditation.

------
pswenson
Wow, this is the definition of nanny-state. This rule should be removed, not
tightened!

What's next? I don't make enough to trade stocks? To gamble? To spend above my
means?

------
gojomo
Use of net wealth, rather than a wealth-oblivious measure like
skills/certifications, to disqualify people from an important part of the
economy should be rejected on economic-rights grounds.

Currently you could be professionally certified to advise and manage a
millionaire's money, and put it into private ventures, but not be allowed to
invest even token amounts into those same ventures yourself, 'cuz you're poor.

------
Nursie
Over here in the UK we don't seem to have this restriction.

There are lots of other laws about it, but you don't have to be rich to sink
some cash in private equity schemes. We even seem to have sprouted a
kickstarter for equity in the form of Crowdcube. Which I rather like because
kickstarter always felt a bit wrong. If I'm micro-investing, surely I ought to
be micro-profiting too, if the company takes off?

~~~
tonnesoffun
It's comical that the $ amount requirements to invest haven't been adjusted
for 30 years, but the real issue stems from the consequence of a rule created
in the 80s. Tell me the last time you checked a stock price in a newspaper?!

------
justizin
"For example, why not allow relevant certified professionals, such as CPAs and
CFAs, to automatically qualify as AIs?"

This strikes me as an incredibly bad idea. The bar for CPA is painfully low.

~~~
Zikes
Better they manage someone else's money than their own?

------
Lehmanbrosmelee
Wow, thanks for the update. Enjoyed reading this. Looking forward to seeing
more from you guys.

