SEC Urged to Reduce Diversity Barriers for Accredited Investors

The SEC should remove net worth requirements for obtaining “accredited investor” status to help ensure that minorities aren’t unfairly excluded from venture funds and other privately-held share offerings, a nonprofit law firm said in a petition to the agency.

“The current ‘accredited investor’ rules have a disproportionately negative impact on communities of color, particularly given the existing racial wealth gap,” said Ramona Ortega, CEO of financial planning platform My Money My Future in the petition for the Investor Choice Advocates Network (ICAN).

The SEC is working on a proposal to redefine “accredited investor” status for private offerings, as ...