Monday, August 31, 2020

LLCs As “Accredited Investors”


LLCs As “Accredited Investors”

      Last week the Securities and Exchange Commission approved amendments to Rule 501 of Regulation D to expand the definition of who is an “accredited investor.”

      Effective late October, 2020, pursuant to amendments to Rule 501 of Regulation D approved by the Securities and Exchange Commission on August 26, 2020 and effective late October, 2020, limited liability companies with at least $5 million in assets fall within the definition of an “accredited investor.” See SEC Modernizes the Accredited Investor Definition, Release 2020-191 (August 26, 2020); HERE IS A LINK to that Release.  There is also Release No. 33-10824, SEC Amending the “Accredited Investor” Definition; HERE IS A LINK to that document.

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