SEC Amends Definition of “Accredited Investor” and Expands List of Entities Eligible to Qualify as “QIBs”
By: Victoria B. Bantz, Esq. and Laura Fodor, Esq.
On August 26, 2020, the Securities and Exchange Commission (the “SEC”) adopted
amendments to the definition of “accredited investor” under Rules 215 and 501(a) of the Securities
Act of 1933, as amended (the “Securities Act”) as well as amendments to the definition of
“qualified institutional buyer” under Rules 144A and 163B of the Securities Act and Rule 15g-1
of the Securities Exchange Act of 1934 (the “Exchange Act”). These amendments were published
in the Federal Register on October 9, 2020 (85 FR 64277), and become effective on December 8,
2020. The final rule can be found in the Federal Register and on the SEC’s website.
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