releases: https://polis.house.gov/news/documentsingle.aspx?DocumentID=394744
Data license: MIT · Data source: dwillis/congress-press
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| https://polis.house.gov/news/documentsingle.aspx?DocumentID=394744 | Polis, Schneider Lead Letter Calling for Expanded Access to Startup Business Investing Opportunities | 2014-09-30 | 2014 | 2014-09 | Democrat | House | CO | Jared Polis | P000598 | polis.house.gov | legacy | Last week Representatives Jared Polis (CO-02) and Brad Schneider (IL-10) sent a letter signed by fifteen Members of Congress to US Securities and Exchange Commission (SEC) Chairwoman Mary Jo White calling on her to expand the criteria for potential investors in startups and other small businesses beyond a purely financial metric. Under federal securities law, “individual accredited investors” are permitted to invest in an array of assets, including individual businesses, VC funds, PE funds, and private placements, which are not available to other individuals. To qualify as accredited under existing regulations, the SEC requires an individual to have an annual income over $200,000 ($300,000 for a married couple) or a net worth over $1 million, excluding a primary residence. Currently, the definition does not account for those financially sophisticated investors who have the requisite financial experience and knowledge, but may not meet the SEC’s financial thresholds. The SEC is currently reviewing proposals for altering the definition of an accredited investor, as it was required to do under the Dodd-Frank Act. “Under the Commission’s current rules, many individual investors who do not meet the income or net worth thresholds, are equally or more financially sophisticated as those who do meet the current standards,” wrote the Signatories. “We strongly urge you to adopt an additional accreditation standard based on an individual’s professional experience and knowledge…[to] allow more sophisticated individuals to provide greater investment capital and contribute to the growth and expansion of startups and small businesses and our economy as a whole .” The letter’s proposal draws on many of the findings of a July 2013 Government Accountability Office study, Alternative Criteria for Qualifying As An Accredited Investor Should Be Considered, which examined market participants views on existing and possible alternative criteria for accredited investor status. The GAO report recommended that the SEC should consider alternative criteria for the accredited investor standard. The full text of the letter and list of signatories is below: The Honorable Mary Jo White, Chairwoman U.S. Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549 Dear Chairwoman White, As the United States Securities and Exchange Commission (Commission) conducts its review of the definition of an individual accredited investor, we strongly urge you to adopt an additional accreditation standard that takes into account other relevant factors besides financial metrics to determine financial sophistication. Specifically we request that you consider the quality of an individual’s experience and knowledge. Under the Commission’s current rules, many individual investors who do not meet the income or net worth thresholds, are equally or more financially sophisticated as those who do meet the current standards. In our view, those individuals with significant professional experience and knowledge should also be able to qualify as an accredited investor, based on the Commission’s definition of sophistication: those “having sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risk of the prospective investment.” As such, we strongly urge you to adopt an additional accreditation standard based on an individual’s professional experience and knowledge. This standard could include, but should not be limited to, individuals who meet one of the following criteria: a) previous or current investors in an exempt offering under Regulation D; b) an advanced degree in business or finance or a chartered financial analyst credential or similar designation; c) work experience currently or formerly as a c-level executive at a company which, during the time of such employment, has sold shares or debt; or d) successful passage of the broker-dealer registration exam. We are hopeful that the Commission will consider adopting an additional standard to the accredited investor definition based on an individual’s experience and knowledge. This additional standard will allow more sophisticated individuals to provide greater investment capital and contribute to the growth and expansion of startups and small businesses and our economy as a whole. Sincerely, Jared Polis Bradley Schneider Ron Kind Derek Kilmer John Delaney David Scott Cedric Richmond Scott Peters Juan Vargas Bill Owens Tony Cardenas John Carney Susan DelBene Mike Quigley Gerry Connolly | 1 | 2026-03-30T12:14:52Z | 2026-03-30T12:14:52Z |