SEC Expands Accredited Investor and QIB Definitions

The Securities and Exchange Commission today approved amendments to the definitions of “accredited investor” under Regulation D and “qualified institutional buyer” definition under Rule 144A. The amendments are intended to identify institutional and individual investors that have the knowledge and expertise to participate in private capital markets.

Under the amended rule, bank collective investment funds that are offered to retirement plans may now be made available to H.R. 10 plans for self-employed individuals. In addition, the SEC expanded the list of individuals who can qualify as accredited investor. The American Bankers Association had sought the expanded QIB definition last year and supported the proposed amendments in a March 2020 letter.