Dodd-Frank Wall Street Reform & Consumer Protection Act | SIPC; Accredited Investor

SIPC coverage Changes!– Dodd-Frank ups SIPC coverage from $100,000 to $250,000 for the cash in your accounts. 

Total SIPC coverage will now be $500,000 of which $250,000 can be in cash. 

Definition of “accredited investor” – Dodd-Frank directs the SEC to assess and change the dollar limits for net worth and annual income used to determine whether or not an investor be considered “accredited”.  But, what the SEC determines, as per the bill, be effective for a period of four years regarding the net worth test.

The Act directs the SEC to amend the definition of “net worth” of an accredited investor to specifically exclude primary residence.  Most broker/dealers did that anyway but it’ll soon be official.