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ADISA and IPA Join to Submit Comment Letter Regarding SEC’s Review of the Definition of an Accredited Investor

Sep 06, 2016

ADISA, the nation’s largest trade association representing the alternative and direct investment industry, submitted a joint comment letter with the Investment Program Association (IPA) to the U.S. Securities and Exchange Commission (SEC) in regards to its review of the definition of an “accredited investor.” 
 
Section 413(b)(2)(A) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) directs the SEC to review the accredited investor definition as it relates to natural persons every four years to determine whether the definition should be modified or adjusted for the protection of investors, in the public interest and in light of the economy. The IPA and ADISA believe that there is no objective, measurable basis for changing the definition at this time. The two organizations further submit that the potential for market disruption and investor harm that might result from changing the definition outweighs any potential investor protection or other public policy benefit, and believe that changes to the definition might in fact negatively impact the ability of companies and businesses across the country to raise needed capital for their operation and growth.
 
The letter was signed by ADISA President Mike Bendix, DFPG Investments, and Anthony Chereso, president and chief executive officer of IPA. The letter’s drafting committee included: John Grady of DLA Piper; Ryan Kretschmer of Walton International Group; John Harrison, executive director and chief executive officer of ADISA; Martin Hewitt, attorney at law; Darryl Steinhause of DLA Piper; Larry Sullivan of Passco; and Bill Winn of Starboard Realty Advisors. 
 
You can read the letter in its entirety here.