ADISA Urges Congress to Update Accredited Investor Definition

Aug 16, 2018

ADISA’s Legislative & Regulatory Committee recently sent letters to Republican and Democrat leadership of both the Senate Committee on Banking, Housing and Urban Affairs and the House Financial Services Committee to encourage them to expand the definition of “accredited investor.” ADISA’s letter specifically encourages the Senate to pass bill S.488 as amended and passed by the House on July 17.

ADISA believes the accredited investor definition should be expanded to include sophisticated investors (i.e., those qualifying by their investment credentials and experience), in addition to those qualifying by nature of their net worth. Further, ADISA argues that any indexing done to adjust the net worth thresholds should be done only going forward and not retroactively.

The Legislative & Regulatory committee of ADISA is chaired by Catherine Bowman of The Bowman Law Firm, with Larry Sullivan of Passco Companies as vice chair. The drafting committee for the letter included Catherine Bowman, John Grady of DLA Piper, Thomas Rosenfield of HillStaffer, Deborah Froling of Kutak Rock, and John Harrison, ADISA's executive director. The full text of a sample of one of the letters can be found here.  

ADISA is monitoring the progress of S. 488 and will keep our members apprised of developments. We will issue a “call to action” to facilitate congressional communication in favor of this important reform via our “Contact Congress” website as events warrant. Please feel free to contact John Harrison should you have any questions or comments.