President Obama yesterday signed H.R. 4173 into law, and it became the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under Section 4 of the Dodd-Frank Act, the statute is effective on July 22, 2010, except as otherwise specifically provided.
One notable and immediate change is found in Section 413 of the Act, which provides that during the 4-year period that began on the date of enactment, the net worth standard for determining whether a natural person is an accredited investor shall be $1,000,000, excluding the value of the primary residence of such natural person. Previously the primarily residence was included in the net worth determination.
Click here to access a Seward & Kissel alert reviewing the parts of the Act that impact advisers.
Click here to access the Act.