On this week’s episode, Kent is joined by Gene Trowbridge. Gene, a veteran securities attorney and former syndicator, breaks down potential SEC and Congressional changes to accredited investor rules, including proposals to exclude retirement accounts from net worth calculations, raise income and net worth thresholds, or introduce a qualifying exam. They also explore the debate over allowing 401k funds into alternative investments, the regulatory gray area around finders and referral compensation, and the ongoing tension between capital formation and investor protection. Gene closes by sharing practical advice for both sponsors and passive investors, emphasizing track record, continuity planning, skin in the game, and preparing for risks like rising interest rates and market downturns

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Key Takeaways

● Accredited investor rules may change. Retirement accounts could be excluded from net worth. Income and net worth thresholds may also increase.

● The SEC is balancing capital formation with investor protection. More access to deals means more potential risk.

● Congress is considering allowing 401k funds into alternative investments. Employer liability is a major concern.

● Finder rules are still unclear. Getting paid to raise money without being a broker-dealer remains risky.

● Investors should vet sponsors carefully. Look for track record, continuity, sponsor capital invested, and clear liquidity terms.

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Production by Outlier Audio