On January 25, 2011, the SEC proposed an amendment to the definition of “accredited investor” to implement Section 413(a) of the Dodd-Frank Act. Specifically, the SEC proposed amendments to Rules 215 and 501(a)(5) under the Securities Act to exclude the value of a natural person’s primary residence for purposes of determining whether a natural person is an “accredited investor” (i.e., has a net worth in excess of $1 million). While the provisions of Section 413(a) of the Dodd-Frank Act were effective upon enactment in July 2010, the Act required the SEC to amend these rules.

Comments on the proposal are due by March 11, 2011.