Key Takeaways
- • The Hedge Fund Association (HFA) publicly commended the U.S. Securities and Exchange Commission for amending the "accredited investor" definition, aligning with HFA's long-standing push for knowledge-based qualification standards.
- • HFA's Global President Mitch Ackles endorsed SEC Commissioner Hester M. Peirce's view that holders of Series 7, 65, and 82 licenses and well-informed employees of private funds have the expertise to evaluate investment merits and risks.
- • The amendments are intended to widen the pool of accredited investors and expand access to alternative investment funds based on financial sophistication rather than wealth alone.
- • HFA referenced its prior advocacy, including a September 25, 2019 comment letter, a December 16, 2016 statement supporting the House's expanded definition, and an October 7, 2014 caution on raising net worth thresholds.
Summary
The Hedge Fund Association, a New York-based international nonprofit trade and nonpartisan lobbying organization, and its members have applauded the U.S. Securities and Exchange Commission's amendments to the "accredited investor" definition, according to a Business Wire release dated September 16, 2020. The HFA said the changes are consistent with its prior recommendations to incorporate verifiable knowledge-based standards, which it argues will expand the universe of accredited investors and broaden access to alternative investment funds on the basis of financial sophistication.
HFA Global President Mitch Ackles stated that the organization supports SEC Commissioner Hester M. Peirce's view that individuals holding Series 7, 65, and 82 licenses, as well as well-informed employees of private funds, have the knowledge and expertise needed to evaluate the merits and risks of an investment.
The release points to HFA's history of advocacy on the issue. It lists a September 25, 2019 comment letter to the SEC advocating expanded accredited investor qualifications, a December 16, 2016 statement supporting the House's approval of an expanded definition, and an October 7, 2014 letter cautioning the SEC on the effect of raising accredited investor net worth requirements.
HFA describes itself as representing hedge funds, private equity, venture capital, real estate, wealth management firms, institutional investors, family offices and service providers, including more than 10,000 hedge funds that collectively manage in excess of $3 trillion in assets, according to the organization.
HFA Global President Mitch Ackles stated that the organization supports SEC Commissioner Hester M. Peirce's view that individuals holding Series 7, 65, and 82 licenses, as well as well-informed employees of private funds, have the knowledge and expertise needed to evaluate the merits and risks of an investment.
The release points to HFA's history of advocacy on the issue. It lists a September 25, 2019 comment letter to the SEC advocating expanded accredited investor qualifications, a December 16, 2016 statement supporting the House's approval of an expanded definition, and an October 7, 2014 letter cautioning the SEC on the effect of raising accredited investor net worth requirements.
HFA describes itself as representing hedge funds, private equity, venture capital, real estate, wealth management firms, institutional investors, family offices and service providers, including more than 10,000 hedge funds that collectively manage in excess of $3 trillion in assets, according to the organization.
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