High Net Worth SEC Definition
The high net worth SEC definition refers to individuals who meet specific income, net worth, or professional thresholds set by the U.S. Securities and Exchange Commission. These standards determine eligibility for certain securities exemptions and investment products.
Key Criteria and Thresholds
The SEC generally defines a high net worth individual as someone with a net worth exceeding a set threshold, excluding the value of their primary residence. Income-based tests may also apply, such as individual income over a specified level in each of the last two years. Exact thresholds can change and are detailed in SEC rules and guidance.
Why the Definition Matters
Understanding the high net worth SEC definition helps investors, advisors, and firms determine access to private placements, accredited investor opportunities, and certain restricted securities. It also shapes compliance requirements for offerings and marketing under federal securities laws.
