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IRA Financial Blog

New Accredited Investor Rule Coming – Episode 397

Adam Talks

In today’s episode of Adam Talks, Adam Bergman, Esq. discusses a new bill that will make it easier for people to be considered an accredited investor allowing them more investment opportunities.

Important New Accredited Investor Rules Coming

A new accredited investor rule has been passed by the US House and is expected to become law. The bill aims to make it easier for Americans to become accredited investors by allowing them to pass a simple exam, rather than meeting specific net worth or income requirements. This would grant them access to private placements and other alternative asset investments. The goal of the rule is to protect investors from the risks associated with private investments, but some argue that individuals should have the freedom to invest in these assets as long as they understand the risks. The bill proposes that a course or exam could provide individuals with the necessary knowledge to make informed investment decisions.

Currently, only about 10% of Americans meet the criteria to be accredited investors, limiting their access to certain types of investments. The bill seeks to expand this opportunity to a larger portion of the population, allowing more people to invest in high-growth companies and potentially benefit from the returns offered by private equity investments. Supporters of the bill believe that investment opportunities should be based on individual aptitude rather than arbitrary financial thresholds.

The issue of fraud in investment deals is also discussed by Adam Bergman. While the SEC aims to regulate the market and prevent potential fraud by limiting access to certain investments, fraud can occur in both registered and unregistered investments. To address this, Bergman proposes that the SEC provide information and literature to the public, and require individuals to take a course to become accredited investors. He adds that the accreditation should be renewable every five years.

The passage of the bill is seen as important because it would allow for more alternative asset exposure and investment opportunities. Bergman believes that diversification and more investment opportunities will lead to better returns. He expresses his appreciation for the audience’s attention and encourage them to continue following updates and concludes by wishing the audience a great summer and a wonderful week.

Overall, this episode highlights the potential changes in the accredited investor rule and the arguments surrounding it, as well as the discussion on fraud in investment deals and the role of the SEC. Bergman emphasizes the importance of providing education and expanding investment opportunities to a larger portion of the population. To learn more, listen to the podcast!


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