Recent Developments in Securities Law and Securities Arbitration
Two recent developments may affect securities transactions and securities arbitration taking place in South Carolina. Dodd-Frank Amends Definition of "Accredited Investor" S.C. Code of Regulations R. 13-205 exempts from the registration and filing requirements found in the South Carolina Uniform Securities Act those sales of securities to "accredited investors." R. 13-205 references the definition of "accredited investor" found in 17 C.F.R. 230.501(a) promulgated pursuant to the the Federal Securities Act of 1933. Until earlier this month, the definition of "accredited investor" in the C.F.R. included an investor with a net worth of at least $1 million, and contained no exclusion for the value of that investor's primary residence in calculating net worth. As described in the Sheppard Mullin Corporate & Securities Law Blog , the recent Dodd-Frank Wall Street Reform and Consumer Protection Act, which became effective on July 21, 2...