March 14, 2007
As a CFP and CFA, I am very concerned about the proposed changes to the definition of the threshhold for "accredited investors." As an advisor to many people with net worths in the range of $1 million to $2.5 million, I have a great interest in securing investments that will reduce the risks of long-term investing for my clients. Only a small portions of my clients will meet the proposed new requirement. This would deprive them of the ability to adequately diversify their investments and thereby to maximize their risk-adjusted returns. I ask you to consider maintaining the existing definition of Accredited Investor or find some way to mitigate the effects on the "lower-end" high net worth investor. As I am a fiduciary acting on behalf of my clients, I am making this request in their interests. I am a state-registered, fee-only advisor, and none of my clients invests in hedge funds.