The SEC issued a proposed new rule last week that would conform the definition of an accredited investor as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Comments on the new rule must be received by March 11, 2011. The new rule would change the $1,000,000 net worth test for individuals as follows:
“Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of purchase, exceeds $1,000,000, excluding the value of the primary residence of such natural person, calculated by subtracting from the estimated fair market value of the property the amount of debt secured by the property, up to the estimated fair market value of the property.”
- Marc Ward
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