Discussions during the hearing included whether some assets, such as retirement savings, should be included in accredited investor calculations and whether the amount a person could invest in private offerings should be a percentage of their total assets.

In arguing against tighter guidelines for accredited investors, George W. Bush Institute Executive Director James Glassman said people are willing to take important actions, like buying a home and raising children, without being heavily restricted.

AFL-CIO Policy Director Damon Silvers said there is no way the dollar amount of someone’s assets can be an accurate indicator of investing sophistication.

Now, the SEC accepts statements by retail investors that they meet the accredited investor wealth and income standards.

But University of Denver Law Professor Jay Brown said self-certification fails to protect unwary investors. If an investment sounds good, even if it’s too good to be true, some individuals will be tempted to lie to take advantage of it, he said.

The Investor Advisory Committee did not make a recommendation to the SEC on accredited investor guidelines.


 

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