December 19, 2019
A revision to the rule should include an opportunity for self-taught investors to demonstrate their financial sophistication and achieve accredited status. These individuals may not possess the income, net worth, or certified status, but are nevertheless sophisticated enough to succeed in the analysis and selection of accredited investments. This might be achieved by posting an online test where individuals would be required to define and calculate various business or real estate terms and measures within a short period of time. The term "financial sophistication" may mean different things to different people, but everyone might agree that what's really needed to evaluate various investments and avoid endangering one's wealth is adequate analytical skill. Perhaps requiring some case study investment analysis as part of the test would be sufficient to determine level of understanding. Limiting the test to a short, but reasonable, period of time would prevent the test taker from referring to other sources of information and would ensure that they already possess the requisite skill and knowledge. If one fails the test, they could be permitted to re-take the test after 6 months or a year.