With the enactment of the Dodd-Frank Act on July 21, 2010, the “net worth” standard for an “accredited investor” under Regulation D has been adjusted, effective immediately, to specifically exclude the value of a primary residence from an investor’s net worth determination under Rule 501(a)(5) of the SEC’s private placement safe harbor in Regulation D. This exclusion, immediately effective upon enactment of the Act, without any further action by the SEC, will make it more difficult for natural persons to qualify as accredited investors.

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