Tillis has led Congressional efforts to amend the definition
WASHINGTON, D.C. – Today, Senator Thom Tillis (R-NC) applauded the Securities and Exchange Commission (SEC) voting to propose amendments to the definition of an accredited investor, one of the principal tests for who is eligible to participate in our private capital markets. The proposal seeks to update and improve the definition to more effectively identify institutional and individual investors that have the knowledge and expertise to participate in our private capital markets.
Senator Tillis has led Congressional efforts to amend the definition of accredited investor to expand the number of Americans who are allowed to invest in our nation’s small businesses. Last year, Senator Tillis introduced bipartisan legislation to expand the definition of accredited investor to include individuals who have relevant education, professional expertise, and other credentials to invest in private offerings.
“The SEC’s decision to update the definition of accredited investor to include individuals with relevant expertise is a win for the American people,” said Senator Tillis. “Removing this bureaucratic red-tape and allowing companies to receive financing by people with the appropriate expertise will allow small and emerging companies to continue to grow and produce jobs.”
The proposed amendments would allow more investors to participate in private offerings by adding new categories of natural persons that may qualify as accredited investors based on their professional knowledge, experience, or certifications. The proposal would also expand the list of entities that may qualify as accredited investors by, among other things, allowing any entity that meets an investments test to qualify.