Order Designating Certain Professional Licenses as Qualifying Natural Persons for Accredited Investor Status, 64234 [2020-19188]
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Federal Register / Vol. 85, No. 197 / Friday, October 9, 2020 / Rules and Regulations
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 230
[Release No. 33–10823]
Order Designating Certain
Professional Licenses as Qualifying
Natural Persons for Accredited
Investor Status
Securities and Exchange
Commission.
ACTION: Order.
AGENCY:
The Commission is issuing an
order designating the General Securities
Representative license (Series 7), the
Private Securities Offerings
Representative license (Series 82), and
the Investment Adviser Representative
license (Series 65) as qualifying natural
persons for accredited investor status.
DATES: This Order is effective December
8, 2020.
FOR FURTHER INFORMATION CONTACT:
Charlie Guidry, Special Counsel, Office
of Small Business Policy, at (202) 551–
3460, Division of Corporation Finance,
U.S. Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
SUPPLEMENTARY INFORMATION: Order
designating certain professional licenses
as qualifying natural persons for
accredited investor status pursuant to
Rule 501(a)(10) under the Securities Act
of 1933 (‘‘Securities Act’’).
After consideration of public
comments and for the reasons set forth
in the adopting release for Rule
501(a)(10),1 the Commission hereby
finds that the following professional
licenses meet the attributes to qualify
natural persons holding such licenses in
good standing as accredited investors
under Rule 501(a)(10): General
Securities Representative license (Series
7),2 Private Securities Offerings
Representative license (Series 82),3 and
Investment Adviser Representative
SUMMARY:
1 See Amending the ‘‘Accredited Investor’’
Definition, Release Nos. 33–10824; 34–89669 (Aug.
26, 2020).
2 The Financial Industry Regulatory Authority,
Inc. (‘‘FINRA’’) developed and administers the
Series 7 examination. An individual must be
associated with a FINRA member firm or other
applicable self-regulatory organization member firm
to be eligible to take the exam and be granted a
license. See https://www.finra.org/registrationexams-ce/qualification-exams/series7.
3 FINRA developed and administers the Series 82
examination. An individual must be associated
with and sponsored by a FINRA member firm or
other applicable self-regulatory organization
member firm to be eligible to take the exam. See
https://www.finra.org/registration-exams-ce/
qualification-exams/series82.
VerDate Sep<11>2014
17:54 Oct 08, 2020
Jkt 253001
license (Series 65).4 Our determination
that these three licenses meet the
attributes specified in Rule 501(a)(10)
may be subject to reconsideration
should any significant modifications
occur to the applicable licensing
requirements.
Accordingly, pursuant to Rule
501(a)(10) of Regulation D under the
Securities Act, it is hereby ordered that
the General Securities Representative
license (Series 7), the Private Securities
Offerings Representative license (Series
82), or the Investment Adviser
Representative license (Series 65) shall
qualify natural persons holding such
licenses in good standing as accredited
investors under Rule 501(a)(10).
By the Commission.
Dated: August 26, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020–19188 Filed 10–8–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
17 CFR PARTS 230 and 240
[Release Nos. 33–10824; 34–89669; File No.
S7–25–19]
RIN 3235–AM19
Accredited Investor Definition
Securities and Exchange
Commission.
ACTION: Final rule.
AGENCY:
We are adopting amendments
to the definition of ‘‘accredited
investor’’ in our rules to add new
categories of qualifying natural persons
and entities and to make certain other
modifications to the existing definition.
The amendments are intended to update
and improve the definition to identify
more effectively investors that have
sufficient knowledge and expertise to
participate in investment opportunities
that do not have the rigorous disclosure
and procedural requirements, and
related investor protections, provided
by registration under the Securities Act
of 1933. We are also adopting
amendments to the ‘‘qualified
institutional buyer’’ definition in Rule
144A under the Securities Act to
expand the list of entities that are
SUMMARY:
4 The North American Securities Administrators
Association developed the Series 65 examination,
and FINRA administers it. An individual does not
need to be sponsored by a FINRA member firm to
take the exam. Successful completion of the exam
does not convey the right to transact business prior
to being granted a license or registration by a state.
See https://www.nasaa.org/exams/study-guides/
series-65-study-guide.
PO 00000
Frm 00002
Fmt 4701
Sfmt 4700
eligible to qualify as qualified
institutional buyers.
DATES: This final rule is effective
December 8, 2020.
FOR FURTHER INFORMATION CONTACT:
Jennifer Zepralka, Office Chief, or
Charlie Guidry, Special Counsel, Office
of Small Business Policy, at (202) 551–
3460, Division of Corporation Finance;
Jennifer Songer, Branch Chief, or
Lawrence Pace, Senior Counsel, at (202)
551–6999, Investment Adviser
Regulation Office, Division of
Investment Management; U.S. Securities
and Exchange Commission, 100 F Street
NE, Washington, DC 20549.
SUPPLEMENTARY INFORMATION: We are
adopting amendments to 17 CFR
230.144A (‘‘Rule 144A’’), 17 CFR
230.163B (‘‘Rule 163B’’), 17 CFR
230.215 (‘‘Rule 215’’), and 17 CFR
230.501 (‘‘Rule 501’’) of 17 CFR 230.500
through 230.508 (‘‘Regulation D’’) under
the Securities Act of 1933 (‘‘Securities
Act’’); 1 and 17 CFR 240.15g–1 (‘‘Rule
15g–1’’) under the Securities Exchange
Act of 1934 (‘‘Exchange Act’’).2
Table of Contents
I. Introduction and Background
II. Final Amendments to the Accredited
Investor Definitions
A. Proposed Amendments
B. Final Amendments
1. Natural Persons
a. Natural Persons Holding Professional
Certifications and Designations or Other
Credentials
b. Knowledgeable Employees of Private
Funds
2. Entities
a. Registered Investment Advisers
b. Rural Business Investment Companies
c. Limited Liability Companies
d. Other Entities Meeting an InvestmentsOwned Test
e. Certain Family Offices and Family
Clients
3. Permitting Spousal Equivalents To Pool
Finances for the Purposes of Qualifying
as Accredited Investors
4. Notes to 501(a)
a. Note to Rule 501(a)(5)
b. Note to Rule 501(a)(8)
5. Amendment to Rule 215
6. Other Comments
III. Amendments to Securities Act Rule 163B
and Exchange Act Rule 15g–1
IV. Discussion of the Final Amendments to
the Qualified Institutional Buyer
Definition
A. Proposed Amendments
B. Final Amendments
V. Other Matters
VI. Economic Analysis
A. Introduction and Broad Economic
Considerations
B. Baseline and Affected Parties
C. Anticipated Economic Effects
1 15
2 15
E:\FR\FM\09OCR2.SGM
U.S.C. 77a et seq.
U.S.C. 78a et seq.
09OCR2
]]>Agencies
[Federal Register Volume 85, Number 197 (Friday, October 9, 2020)]
[Rules and Regulations]
[Page 64234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19188]
[[Page 64233]]
Vol. 85
Friday,
No. 197
October 9, 2020
Part II
Securities and Exchange Commission
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17 CFR Parts 230 and 240
Order Designating Certain Professional Licenses as Qualifying Natural
Persons for Accredited Investor Status and Accredited Investor
Definition; Final Rules
Federal Register / Vol. 85, No. 197 / Friday, October 9, 2020 / Rules
and Regulations
[[Page 64234]]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 230
[Release No. 33-10823]
Order Designating Certain Professional Licenses as Qualifying
Natural Persons for Accredited Investor Status
AGENCY: Securities and Exchange Commission.
ACTION: Order.
-----------------------------------------------------------------------
SUMMARY: The Commission is issuing an order designating the General
Securities Representative license (Series 7), the Private Securities
Offerings Representative license (Series 82), and the Investment
Adviser Representative license (Series 65) as qualifying natural
persons for accredited investor status.
DATES: This Order is effective December 8, 2020.
FOR FURTHER INFORMATION CONTACT: Charlie Guidry, Special Counsel,
Office of Small Business Policy, at (202) 551-3460, Division of
Corporation Finance, U.S. Securities and Exchange Commission, 100 F
Street NE, Washington, DC 20549.
SUPPLEMENTARY INFORMATION: Order designating certain professional
licenses as qualifying natural persons for accredited investor status
pursuant to Rule 501(a)(10) under the Securities Act of 1933
(``Securities Act'').
After consideration of public comments and for the reasons set
forth in the adopting release for Rule 501(a)(10),\1\ the Commission
hereby finds that the following professional licenses meet the
attributes to qualify natural persons holding such licenses in good
standing as accredited investors under Rule 501(a)(10): General
Securities Representative license (Series 7),\2\ Private Securities
Offerings Representative license (Series 82),\3\ and Investment Adviser
Representative license (Series 65).\4\ Our determination that these
three licenses meet the attributes specified in Rule 501(a)(10) may be
subject to reconsideration should any significant modifications occur
to the applicable licensing requirements.
---------------------------------------------------------------------------
\1\ See Amending the ``Accredited Investor'' Definition, Release
Nos. 33-10824; 34-89669 (Aug. 26, 2020).
\2\ The Financial Industry Regulatory Authority, Inc.
(``FINRA'') developed and administers the Series 7 examination. An
individual must be associated with a FINRA member firm or other
applicable self-regulatory organization member firm to be eligible
to take the exam and be granted a license. See https://www.finra.org/registration-exams-ce/qualification-exams/series7.
\3\ FINRA developed and administers the Series 82 examination.
An individual must be associated with and sponsored by a FINRA
member firm or other applicable self-regulatory organization member
firm to be eligible to take the exam. See https://www.finra.org/registration-exams-ce/qualification-exams/series82.
\4\ The North American Securities Administrators Association
developed the Series 65 examination, and FINRA administers it. An
individual does not need to be sponsored by a FINRA member firm to
take the exam. Successful completion of the exam does not convey the
right to transact business prior to being granted a license or
registration by a state. See https://www.nasaa.org/exams/study-guides/series-65-study-guide.
---------------------------------------------------------------------------
Accordingly, pursuant to Rule 501(a)(10) of Regulation D under the
Securities Act, it is hereby ordered that the General Securities
Representative license (Series 7), the Private Securities Offerings
Representative license (Series 82), or the Investment Adviser
Representative license (Series 65) shall qualify natural persons
holding such licenses in good standing as accredited investors under
Rule 501(a)(10).
By the Commission.
Dated: August 26, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020-19188 Filed 10-8-20; 8:45 am]
BILLING CODE 8011-01-P
