Amending Regulation D, by eliminating the designation of an accredited investor, and allowing citizens in the United States of America, who are currently deemed as non-accredited investors, to partake in investments that are currently obstructed due to the aforementioned designation.
The accredited investor designation suggest sophistication based on a certain threshold of wealth; however, the threshold is arbitrary and does not even account for inflation.
$1 million in 1982 would be worth $2.7 million in 2019
One of the coveted investment opportunities taken away due to the designation is hedge funds. Hedge funds are an excellent way to provide professional investment administration, investing is a skill that requires experience, discipline, but most importantly time; that is why the hedge fund industry is continuously growing, despite its regulations. A service that provides investment administration should be available to all Americans.
2016 Stock Market Participation:
Bottom 30: 20% Middle 30: 50% Next 30: 80% Top 10: 95%
The accredited investor designation segregates investors based on wealth and restricts coveted investment opportunities; subsequently preventing private companies from taking on investments from non-accredited investors, and limiting non-accredited investors to grow their wealth by partaking in private companies.