4 ms·

It isn't the government's responsibility to protect people from their own mistakes. Accredited investor laws only serve as a gate keeping mechanism.

yathaid 3y ago
That's like ... your opinion. It isn't the government's responsibility to make sure there isn't lead in the food you eat, but we have the FDA. Ditto usury laws, medicine laws etc.
- tastyfreeze 3y ago
  Yup. The government does a lot more than it was set up to do.
greyface- 3y ago
It is literally the SEC's responsibility to protect people from their own mistakes.
- fsckboy 3y ago
  it is not the SEC's responsibility to protect accredited investors from taking risks, it's essentially the meaning of the term
  - greyface- 3y ago
    https://www.sec.gov/our-goals https://www.sec.gov/our-goals says: > The SEC’s long-standing three-part mission—to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation The Securities Act of 1933 contains the phrase "protection of investors" 27 times. It's quite literally part of their mandate.
    - fsckboy 3y ago
      where's the word "accredited"? and I said "from taking risks", so where does it say that? words matter, as you are trying to indicate. Accredited investors are allowed to take risks without the level of oversight that "naive" investors are given. Selective quoting does not change that.
      - greyface- 3y ago
        "Accredited investor" is defined in 15 U.S.C. § 77b(a)(15). You can read the whole text of the Act here: https://www.law.cornell.edu/uscode/text/15/chapter-2A/subchapter-I https://www.law.cornell.edu/uscode/text/15/chapter-2A/subcha...
        fsckboy 3y ago
        [flagged]
SturgeonsLaw 3y ago
My biggest gripe with it is that it's gatekeeping based on net worth. There should be a mechanism to become an accredited investor with any income/wealth level if you pass a financial knowledge exam. Yeah, those can be gamed, but if someone is willing to cheat on a test in order to remove their legal protections and access risky investments, well, good luck to them.
- greyface- 3y ago
  This exists. https://www.finra.org/registration-exams-ce/qualification-exams/series7 https://www.finra.org/registration-exams-ce/qualification-ex... https://www.finra.org/registration-exams-ce/qualification-exams/series65 https://www.finra.org/registration-exams-ce/qualification-ex... https://www.finra.org/registration-exams-ce/qualification-exams/series82 https://www.finra.org/registration-exams-ce/qualification-ex... Pass any one of these, and you're an accredited investor.

yathaid 3y ago

That's like ... your opinion. It isn't the government's responsibility to make sure there isn't lead in the food you eat, but we have the FDA. Ditto usury laws, medicine laws etc.

tastyfreeze 3y ago
Yup. The government does a lot more than it was set up to do.

greyface- 3y ago

It is literally the SEC's responsibility to protect people from their own mistakes.

fsckboy 3y ago
it is not the SEC's responsibility to protect accredited investors from taking risks, it's essentially the meaning of the term
- greyface- 3y ago
  https://www.sec.gov/our-goals https://www.sec.gov/our-goals says: > The SEC’s long-standing three-part mission—to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation The Securities Act of 1933 contains the phrase "protection of investors" 27 times. It's quite literally part of their mandate.
  - fsckboy 3y ago
    where's the word "accredited"? and I said "from taking risks", so where does it say that? words matter, as you are trying to indicate. Accredited investors are allowed to take risks without the level of oversight that "naive" investors are given. Selective quoting does not change that.
    - greyface- 3y ago
      "Accredited investor" is defined in 15 U.S.C. § 77b(a)(15). You can read the whole text of the Act here: https://www.law.cornell.edu/uscode/text/15/chapter-2A/subchapter-I https://www.law.cornell.edu/uscode/text/15/chapter-2A/subcha...
      - fsckboy 3y ago
        [flagged]

SturgeonsLaw 3y ago

My biggest gripe with it is that it's gatekeeping based on net worth. There should be a mechanism to become an accredited investor with any income/wealth level if you pass a financial knowledge exam. Yeah, those can be gamed, but if someone is willing to cheat on a test in order to remove their legal protections and access risky investments, well, good luck to them.

greyface- 3y ago
This exists. https://www.finra.org/registration-exams-ce/qualification-exams/series7 https://www.finra.org/registration-exams-ce/qualification-ex... https://www.finra.org/registration-exams-ce/qualification-exams/series65 https://www.finra.org/registration-exams-ce/qualification-ex... https://www.finra.org/registration-exams-ce/qualification-exams/series82 https://www.finra.org/registration-exams-ce/qualification-ex... Pass any one of these, and you're an accredited investor.