In August 2020, the SEC voted 3-2 to expand the definition of an accredited investor. Historically, to invest in most alternative investments, one must be an accredited investor, meeting certain wealth and income requirements. Under the new rule, anyone holding basic stockbroker certificationsspecifically, Series 7, Series 65, and Series 82 licensesis considered an accredited investor. Also included: knowledge employees of private equity, hedge fund, and other employers. Additionally, SEC and state-registered investment advisers, exempt reporting advisers, and rural business investment companies (RBICs) may now qualify as accredited investors.

Please read the following document about a recent change to the accredited investor rule:

SEC Gives More Investors Access to Private Equity, Hedge Funds.pdf

Answer the following question in 300 words or less:

Do you believe that this move by the SEC was good or bad?

In answering this question, consider the individuals and firms affected. Consider the knowledge base inherent in the various exams that the SEC lists. Consider the risks of private funds. Consider the impact on public markets.

(there is no right answer!)

(You might want to look at these, from SEC folks)

https://www.investinblockchain.com/hester-peirce-accredited-investor-definition-should-change/ (Links to an external site.) (pros, she voted for)

https://www.sec.gov/news/public-statement/lee-crenshaw-accredited-investor-2020-08-26 (Links to an external site.) (cons, they voted against)