Insights & Regulatory Updates
ICAN Petitions Court to Compel SEC Review of “Accredited Investor” Rule
The Investor Choice Advocates Network (ICAN) has filed a writ of mandamus seeking to compel the SEC to review its definition of “accredited investor,” sparking renewed debate over a long-standing rule that governs participation in private investment markets. At the heart of the issue is whether the current standard, which limits eligibility based on income or net worth, strikes the right balance between protecting investors and fostering economic growth.
Update: The Supreme Court’s Decision in SEC v. Jarkesy and Its Broader Impact on SEC Enforcement
The Jarkesy ruling has considerable consequences for the SEC’s enforcement program. For years, the SEC has utilized its administrative forum to pursue civil penalties for securities fraud, with the flexibility to adjudicate matters in-house. However, the Supreme Court's decision effectively eliminates this option for cases seeking civil penalties. As a result, the SEC will likely need to shift more cases to federal court, where defendants are entitled to a jury trial. This shift could increase the complexity, time, and costs associated with SEC enforcement actions.