Eliza Sporn Fromberg Quoted in Law360 "Dated Accredited-Investor Standard Creates SEC Dilemma"

Eliza Fromberg was quoted in an article, "Dated Accredited-Investor Standard Creates SEC Dilemma," on Law360. On October 9, the SEC Investor Advisory Committee proposed that the SEC reconsider the accredited-investor standard, which has not changed since 1982. The current standard requires a person to have a net worth of more than $1 million, or at least $200,000 in annual income for the most recent two years to be deemed an accredited investor. Eliza noted, "There are many people who meet those thresholds who are completely clueless about finance... [and] others who aren't wealthy but who are more than capable of understanding a complex investment." The investment advisory committee proposed the SEC move toward a more dynamic way of assessing whether an individual investor is suitable for private securities deals.