The U.S. Securities and Exchange Commission (SEC) is currently seeking comments on changing the hurdle levels for investors who are defined as “accredited,” providing them access to alternative investments typically not available to the general public. Currently the regulatory has two standards, "accredited" and a higher "qualified" standard. Neither standard currently includes any method for knowledge testing and is only reliant on financial means.
SEC: Accredited investor definition has not kept up with inflation
Some hedge funds and alternative investment managers offer their services only to those “sophisticated” investors where they are not required to meet often strict and exclusionary regulatory hurdles designed to protect less...
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