“A four-page piece of legislation that passed through the US House of Representatives on July 21 calls on the SEC to revise the definition of “accredited investor” from high-net-worth individuals to anyone who passes a federally mandated exam.”
(Source: Capitol Pool)

The idea obviously is to broaden the pool of “accredited investors” who can be mass herded into expensive ALT investments at the top of the world’s biggest and most lucrative cycle.

Creating a process that establishes who exactly is an accredited investor and then following it diligently is a pain in the ass to both the creator and the potential client. This seems to be a simple solution that fits all and can be done online. Voila!

But, there are two different concepts here at a potential loggerhead. The current system is designed to establish a hurdle of dollars before entering into an LP. Passing a test that measures knowledge of investing in general and a product specifically weights direct investment knowledge and conceptually IQ. What THAT has to do with having accumulated a multi-seven-figure net worth can be in our experience, a tenuous correlation. 😊