A quick follow up to this post. On December 21, 2011, the SEC amended its rules to conform the SEC’s definition of “accredited investor” to the requirements of Dodd-Frank. You can read about it here. Under the amended rule, the value of an individual’s primary residence will not count as an asset when calculating net worth to determine “accredited investor” status. Indebtedness secured by the person’s primary residence, up to the estimated fair market value of the primary residence, is not treated as a liability, unless the borrowing occurs in the 60 days preceding the purchase of securities in the exempt offering and is not in connection with the acquisition of the primary residence. Under the new definition, any indebtedness secured by a person’s primary residence in excess of the property’s estimated fair market value is treated as a liability. Under certain circumstances, individuals who qualified under the pre-Dodd-Frank definition of accredited investor will be permitted to use that prior net worth standard for certain follow-on investments. The amended net worth standard will take effect 60 days after publication in the Federal Register. Update your forms!