End Accredited Investors: Equal Access to Investment Opportunities for All
The article argues that the concept of accredited investors in private securities offerings should be abandoned. The Securities and Exchange Commission's current view of accredited investors as sophisticated may not be accurate. The authors suggest getting rid of the distinction between accredited and non-accredited investors and instead rely on mandatory disclosures to ensure all investors have essential information. This approach would not significantly increase costs for issuers and would have several advantages over the current system.