GAO has completed a report mandated by the Dodd-Frank Act on the accredited investor standard.  The report examines market participants’ views on

  • the existing criteria for accredited investor status and
  • alternative criteria.

To address these objectives, GAO conducted a literature review, examined relevant data, and interviewed domestic and foreign regulators and industry representatives to identify alternative criteria. GAO also conducted structured interviews of 27 market participants (including broker-dealers, investment advisers, attorneys, and accredited investors).

GAO recommended the SEC should consider alternative criteria for the accredited investor standard. For example, participants with whom GAO spoke identified adding liquid investments and use of a registered adviser as alternative criteria. The SEC agreed with GAO’s recommendation.