The Hedge Funds Association was quick to weigh in on the news that the SEC's Investor Advisory Committee was planning to recommend that the commission revise its accredited investor definition.
In its comment letter to the committee, HFA said that "using net worth or income as a litmus test for investor sophistication is outdated."
Under the current standard, the HFA argued, "wealthy individuals can lose a great deal of money by making ill-informed investment decisions while well-informed, highly sophisticated and less wealthy investors are prevented from investing in private funds because of an arbitrary economic cut off."
