The SEC is expected to vote Wednesday on whether to raise hedge fund net worth minimum to $2.5 million from $1 million.
WASHINGTON (Reuters) -- The Securities and Exchange Commission said Tuesday it is moving to increase the minimum net worth required for an investor to be eligible to invest in hedge funds to $2.5 million from $1 million.
At an open meeting of the investor protection agency scheduled for Wednesday, the proposal is expected to be voted on and then undergo a public comment period, SEC Chairman Christopher Cox told reporters at a briefing.
Final action by the commission would come later.
"We are going to be lifting the accredited investor standard from where it has been since 1982 at $1 million of net worth to $2.5 million," Cox said.