AICPA supports SEC plan to recognize CPAs as accredited investors

The AICPA voiced support in a comment letter for an SEC proposal that would allow CPAs by virtue of their credential to qualify as accredited investors.

“The accredited investor framework is intended to identify individuals who possess sufficient financial sophistication to evaluate investment opportunities and risks without the protections associated with registered offerings,” the comment letter, dated Oct. 27, said. “CPAs satisfy that condition.”

On Sept. 30, the SEC proposed providing individual investors new pathways to qualify as accredited investors, including by virtue of being a CPA or holding certain other credentials. The SEC also is considering the development of an exam by FINRA for accredited investor qualification.

The SEC last added new categories of qualifying natural persons and entities to the definition of “accredited investor” in 2020.

The AICPA comment letter was signed by Sue Coffey, CPA, CGMA, the AICPA’s CEO–Public Accounting.

“CPAs frequently advise businesses, entrepreneurs, investors, and growing companies and are well positioned to understand the opportunities and risks associated with private offerings,” the letter continued. “Allowing CPAs to participate more fully in these markets would support capital formation while maintaining an appropriate level of investor sophistication.”

Registration is open for the AICPA Conference on Current SEC and PCAOB Developments, scheduled for Dec. 7–9 in Washington, DC, and online.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.