See "Dodd-Frank Reform Bill May Put a Damper On Private Placements" in SEC/Corporate. For purposes of the "accredited investor" test under Regulation D, effective immediately, the value of an individual’s primary residence is no longer included as a component of net worth. All issuers, including hedge and private equity funds, currently engaged in private placements in the U.S. relying on Rule 506 of Regulation D must update their subscription documents immediately and take this new standard into account for pending and future subscriptions that were not consummated prior to July 21.

Click here to read the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.