Securities laws define an “accredited investor” like this. There are so many problems with these definitions I don’t even really know where to start, but firstly, I think the most glaring problem with the existing definition of a “sophisticated investor” is the wealth aspect. Wealth does not equal, approximate, or even remotely correlate with financial sophistication.
What else needs to be changed? Should we require at least a Bachelor’s degree in Finance? Masters? PhD? X years of professional experience? Lets talk this out and draft what we think it should really be. GO!