Law Change: Merit-Based accredited Investor Test
Current Definition Favors already Wealthy
Today's definition of an accredited investor adopted by the SEC is founded on the idea that investors who can bare a loss should be able to invest in potentially lucrative investments, based on income/wealth they are deemed "sophisticated" investors, limiting everyone else to the most cost-burdened and lowest yielding investments such as money market deposit accounts, public stocks, mutual funds, bonds, and ETF's. That means only the about 10% of the US population who are considered accredited investors have access to private investments such as VC, Private equity, crypto-based securities or crowdfunding.
During a young professionals's most crucial time to grow their income&savings, their ability to save for a downpayment for a home or retirement is handicapped without access to make small investments in higher yielding investments. Today they are stuck with a 2% savings account that does not beat inflation, costly mutual funds or stock with capped upside. A recent example is Lyft's IPO, where its believed private investors have already reaped the upside, leaving public stock investors to hope the company can overcome its $1bn per year loses and turn a profit while sustaining growth. Further, as a new financial rails are developed in blockchain, those investments are also being limited to only accredited and international investors due to the current definition.
Update the Outdated Definition
We believe INVESTMENT ACUMEN and exposure to industry trends are a much better measure to define accredited investors in the US, and therefore make more attractive investments accessible. Therefor we want to push a bill through congress to change this definition, opening up more attractive opportunities individuals can make in the amount they wish to invest.
Mission to Change
Bring a bill to US Congress to augment today's definition to provide a diverse set of metrics:
1. Existing: income/net worth test (income test of earning >$200k for 2 yrs or more, or net worth test of >$1 net worth not including primary home); to also include; OR
2. Pass FINRA's Registered Investment Advisor Series 65 or CFA I for individuals, or for those employed by registered broker dealers if they have passed the Series 7, Series 82 (regardless of education); OR
3. Hold a BS/BA/MA in business/finance/MBA degree from an accredited university and at least 1 yrs work experience
We are organizing individuals across the nation to speak up to their congressional representatives. Signup and we will send information on who to contact and suggested messaging. Each voice counts, and together we will be heard.
If reaching out on behalf of an entity, please provide the name here. (this assumes you will act on behalf of that company, will try to get their sponsorship)
City where you reside (helps in organizing folks to reach out to your Representatives/Senators)
State where you reside (use abbreviation "CA")
What are you interested in helping with?
Reaching out to my Congress reps (we will provide templates and names/info)
I have legislation professional experience, can help strategize, draft or lobby
Donate to fund marketing efforts (option if not an American citizen, or an entity)
Engineer who can help build stuff (option if not an American citizen)
Digital marketer who can help build online buzz (option if not an American citizen)
Which do you support to go on a bill augmenting the existing income/net worth test for accredited investors?
FINRA proctored Registered Investment Advisor (RIA) Series 65 test (anyone with a computer can sign up for training and for the test)
Pass CFA Part I test (CFA has several parts the suggestion is only the first is required)
Hold a BS/BA/MA in business/finance from an accredited university and at least 1 yrs work experience
Hold an MBA degree from an accredited university and at least 1 yrs work experience
If this law passed with the criteria above, would you become an accredited investor?
Already accredited, concerned about others
Tell us your story. Why is this an issue of interest?
A copy of your responses will be emailed to the address you provided.
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