The changes would allow more individuals and institutions to invest in private offerings of unregistered securities.

By Alexander F. Cohen, Paul M. Dudek, Joel Trotter, Dana G. Fleischman, Stephen P. Wink

On August 26, 2020, the US Securities and Exchange Commission (SEC) expanded the definitions of accredited investor (AI) and qualified institutional buyer (QIB). Notably, while the SEC added to the categories of individuals and entities that qualify as AIs and QIBs, it did not change any of the existing financial thresholds. It also made a conforming change to testing the waters under Rule 163B.