{"id":44426,"date":"2014-10-08T07:04:39","date_gmt":"2014-10-08T11:04:39","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=44426"},"modified":"2014-10-08T07:06:17","modified_gmt":"2014-10-08T11:06:17","slug":"hfa-seeks-clarification-of-accredited-investor-in-jobs-act","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2014\/hfa-seeks-clarification-of-accredited-investor-in-jobs-act.html","title":{"rendered":"HFA Seeks Clarification Of “Accredited Investor” In JOBs Act"},"content":{"rendered":"

\"jobs_act\"<\/a>New York (HedgeCo.Net) – The Hedge Fund Association yesterday submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) as the regulatory agency considers proposed changes to the definition of an \u201caccredited investor\u201d under Rule 501 of Regulation D.<\/p>\n

The HFA was very supportive of The Jumpstart Our Business Startups Act (JOBS Act), which was passed with the intent of making capital raising easier on growing business, and private investment funds. Any restriction on the definition of “accredit investor” that is arbitrarily based on a net worth criteria would in our opinion undermine the intent and objective of the JOBS Act.<\/p>\n

“While the HFA fully appreciates and shares the SEC\u2019s goal of protecting investors from making investments which are beyond their financial sophistication, the HFA believes using net worth or income as a litmus test for investor sophistication is outdated” The hedge fund advisory group said. “On behalf of the private investment fund industry, including hedge funds, private equity funds, venture capital funds and real estate funds and other growing operating businesses seeking capital in the United States from private investors, the HFA strongly and respectfully urges the SEC to reject an increase in the current requirements, originally set in 1982, to account for inflation. The definition was already significantly narrowed when the value of an investor\u2019s primary residence was excluded under The Dodd\u2013Frank Wall Street Reform and Consumer Protection Act.<\/p>\n

The HFA favors a number of alternatives, such as (i) a knowledge or education-based standard, (ii) a requirement that a non-sophisticated investor engage an independent registered investment professional to review and approve the investment, or (iii) limiting the maximum percentage of net worth that any investor may contribute.<\/p>\n

\u201cThe HFA believes that changes to the net worth requirements would fundamentally undermine the private placement market which infused nearly $50 Billion into the United States\u2019 economy in 2013 and will materially and negatively impact small business growth by reducing the number of accredited investors in the U.S. by more than half,\u201d said Ron S. Geffner, HFA Vice President.<\/p>\n

\u201cThe HFA supports any sensible change that enhances investor protection, but is strongly opposed to any change in the rule which would further restrict the investor pool resulting in a higher barrier to entry for start-up funds, increased challenges for emerging funds and growing operating businesses, and a stifling of capital formation,\u201d added Simon Riveles, Chairman of HFA\u2019s Regulatory and Government Advisory Board.<\/p>\n

Alex Akesson
Editor for HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a> is a premier hedge fund database<\/a> and community for qualified and accredited investors only. Membership in HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds<\/a>!
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – The Hedge Fund Association yesterday submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) as the regulatory agency considers proposed changes to the definition of an \u201caccredited investor\u201d under Rule 501 of Regulation […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,919,3],"tags":[],"class_list":["post-44426","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-regulation","category-hedge-fund-research","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=44426"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44426\/revisions"}],"predecessor-version":[{"id":44430,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44426\/revisions\/44430"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=44426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=44426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=44426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}