October 1, 2016
The accredited investor rule is unconstitutional. The rule prevents non-accredited investors (poor people) from having access to certain types of investments under the guise of "protecting them" from losing their money. Non-accredited investors are allowed to lose their money on some types of investments (listed securities) but not others (private equity). Attempting to protect investors from losing their money is like preventing anyone under six feet tall from walking down a street known to harbour tough guys because they might get beat up unless they are tall.
Instead of a blanket prevention prohibiting non-accredited investors from investing in certain types of deals, the SEC's function should be to EDUCATE investors and warn them about the RISKS of losing their money in certain types of deals. This would allow individuals to FREELY INVEST as they see fit and not restrict their freedom to invest.