The US Securities and Exchange Commission has announced amendments to the definition of a crucial test that determines investors’ eligibility to participate in its private capital markets, known as the accredited investor.

Investors can now qualify based on relevant certifications, experience, and professional knowledge. The changes also build on the entities that may qualify as accredited investors. These include limited liability corporations with US$5m in assets as well as state-registered investment advisers. In terms of SEC offerings that require an accredited investor definition, Regulation D enables capital to be raised via sales of equity or debt securities, negating the need to register those securities

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