It is "possible leaning to probable" that the SEC under President Trump will ease the accredited investor definition and make it possible for more people to invest in private companies, hedge funds and venture capital, an agency consultant said Wednesday.
On a related issue, she said the Securities and Exchange Commission could very likely ease the standard of proof for investment advisors and broker-dealers that someone is an accredited investor.
“If someone says they are accredited and there is no reason to believe that is not true, then that should be proof enough,” said Sara Hanks, co-chair of the SEC Advisory Committee on Small and Emerging Companies and CEO of CrowdCheck, a crowdfunding consulting company.
The current accredited investor standard is at least $200,000 a year in income for a person (or $300,000 for couples) and net worth of more than $1 million, excluding the value of a primary residence. The SEC adopted amendments to its accredited investor standards in 2011.
Hanks also put regulations and guidance to give more certainty on what it means to be a broker-dealer in the “possible leaning to probable” bucket.
She spoke during a break at an advisory committee meeting at SEC headquarters in Washington, D.C.