The SEC is reviewing the accredited investor rule to see if they should raise the minimum net worth and annual income requirements that individuals must meet to qualify for the accredited investor definition. The current rules describe an accredited investor as a person with a net worth of $1 million or annual income of $200,000 in each of the previous two years.
These standards have been updated since 1982 when the rule was initiated.
To read the full story about this proposed change to the accredited investor rule please read Seeking Alpha – Stock Market Opinion & Analysis.

Good News - The rule only affects investors who participate in Hedge Funds.
At the December 13, 2006 meeting, the SEC Commissioners unanimously approved a proposed rule to apply an “enhanced accredited investor” standard for individuals that invest in certain privately offered funds which rely on the Section 3(c)(1) exemption from registration under the Investment Company Act of 1940. The Staff of the SEC noted that the enhanced accredited investor standard would not apply to individual investors in venture capital funds in light of the critical role such funds play in the initial capitalization of small business in the United States. There were no further comments as to whether other types of privately offered funds would be excluded from the enhanced standards.

Here is the complete SEC revised rule if you are interested in learning more.

Bookmark to: