The SEC is struggling with the concept of an accredited investor, a system that was established in 1982 and has remained largely unchanged. The call to modify these rules comes at a time when more companies are choosing to stay private longer and avoid the expense of meeting the regulatory compliance requirements of a public filing. As the Regulation D unregistered offerings increase, some believe the situation puts investors at risk. Hugh D. Berkson, president of PIABA, believes the current structure is “a particularly attractive tool to promote fraudulent” dealings. Others argue that investors should not be limited in their choices and don’t need protection.
Hugh Berkson is a Securities Attorney with McCarthy, Lebit, Crystal & Liffman, Co. LPA with over 20 years of representing individuals who have lost money due to the negligence of investors and brokers.
Hugh is a past President of the Public Investors Arbitration Bar Association (PIABA), an international legal association composed of practitioners who represent investors in disputes with the securities industry. He was also just re-elected to PIABA’s Board of Directors, where he has served as a director since 2011.