Paul Sullivan, in his weekly NY Times column, Wealth Matters, writes about possible changes to accredited investor rules. His article begins as follows:
DAVID VERRILL considers himself a savvy, educated investor. Since the year 2000 he has been part of a group that has invested $25 million in 35 start-up companies around New England. He has an M.B.A. from M.I.T.’s Sloan School of Management in Cambridge, Mass., where he is executive director of the school’s Center for eBusiness.
But the Securities and Exchange Commission will consider new guidelines, as early as October, that could disqualify him from making those private investments. Even though he knows the start-up scene well in the Boston area where he lives and carefully researches companies before making one or two investments a year, he might no longer be considered an accredited investor entitled to make what are generally seen as riskier private investments.
The prospect of change has created a furor in the investment world, where some fear that the changes will shrink the pool of private investors and unfairly limit the investment opportunities for millions of people.