Are changes to the definition of “accredited investor” (as defined in Section 501 of the Securities Act of 1933) looming? Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Securities and Exchange Commission (the “SEC”) is required to reexamine the definition of “accredited investor” every four years to determine if changes are necessary to protect investors, among other objectives. Shortly after the Dodd-Frank Act was enacted in 2010, the SEC revised the definition (excluding a person’s primary residence from the net worth calculation) and is at it once again this summer. Under the current definition an individual must have an annual salary of $200,000 ($300,000 if married) in each of the prior two years or a net worth of $1 million (excluding their primary residence). The SEC is taking comments on modifications to the definition which range from calls to increase both the net worth and income requirements to a letter from certain congressman inquiring as to the SEC’s views on looking to alternate criteria for determining accredited investor status (e.g., education and/or certifications). If the SEC were to revise the definition to increase net worth and income requirements it could negatively impact the ability for companies to raise capital. Such an outcome seems to contradict the stated objectives of the Jumpstart Our Business Startups Act, legislation passed in 2012 meant to encourage access to capital for companies.