On August 26, 2020, the SEC announced the adoption of amendments to the definitions of “accredited investor” and “qualified institutional buyer,” terms that loom very large in determining who may invest in private placements.  The amendments are in line with the SEC’s previously stated intention of making private investments available to more investors and will, among other things:

  • allow natural persons to qualify as accredited investors based upon various professional certifications, designations or credentials, including persons who hold Series 7 licenses;
  • include as accredited investors, for purposes of investing in a fund, “knowledgeable employees” of the fund;
  • treat as accredited investors LLCs, family offices and their family clients, and other entities owning $5 million of qualifying investments, as well as SEC- and state-registered investment advisors; and
  • allow “spousal equivalents,” as well as legally recognized spouses, to pool finances to qualify as accredited investors. 

The amendments will become effective 60 days following publication in the Federal Register.

A more detailed discussion of the amendments can be found at The Securities Edge, our securities and corporate governance blog. Please direct any questions or observations to Gunster securities law and corporate governance practice leader Bob Lamm.

Yes! Please sign me up to receive email alerts from other Gunster practice areas.

This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.


About Gunster

Gunster, Florida’s law firm for business, provides full-service legal counsel to leading organizations and individuals from its 13 offices statewide. Established in 1925, the firm has expanded, diversified and evolved, but always with a singular focus: Florida and its clients’ stake in it. A magnet for business-savvy attorneys who embrace collaboration for the greatest advantage of clients, Gunster’s growth has not been at the expense of personalized service but because of it. The firm serves clients from its offices in Boca Raton, Fort Lauderdale, Jacksonville, Miami, Naples, Orlando, Palm Beach, Stuart, Tallahassee, Tampa Bayshore, Tampa Downtown, Vero Beach, and its headquarters in West Palm Beach. With more than 280 attorneys and consultants, and over 290 committed professional staff, Gunster is ranked among the National Law Journal’s list of the 500 largest law firms and has been recognized as one of the Top 100 Diverse Law Firms by Law360. More information about its practice areas, offices and insider’s view newsletters is available at www.gunster.com.

Close


Find a Professional

by Name


by Practice/Office