> 'Why is it presumed that at "arbitrary net worth 1 million," a person is "financially sophisticated?'
It's not so much proving they are financially sophisticated as it is saying they have enough that "they are on their own". For instance, I can't recall many people caring about the wealthy who lost so much in the Madoff scandal. Most opinions seemed to be "they should have known better".
> 'If the sec wants to I guess "protect people from themselves," why don't they have an actual certification system that is based on a demonstration of knowledge?'
You can actually be exempt from the income/wealth requirements if you are an investment advisor / registered broker. I believe you can be an executive at the issuer and be exempt to.
> 'Finally, why aren't people with a net worth of under 1 million protected from other poor financial decisions, since in your mind they are not "financially sophisticated" and thus are more likely to engage in payday loans or other predatory financial institutions?'
SEC doesn't regulate those. I agree predatory lending should be reigned in though.
It's not so much proving they are financially sophisticated as it is saying they have enough that "they are on their own". For instance, I can't recall many people caring about the wealthy who lost so much in the Madoff scandal. Most opinions seemed to be "they should have known better".
> 'If the sec wants to I guess "protect people from themselves," why don't they have an actual certification system that is based on a demonstration of knowledge?'
You can actually be exempt from the income/wealth requirements if you are an investment advisor / registered broker. I believe you can be an executive at the issuer and be exempt to.
> 'Finally, why aren't people with a net worth of under 1 million protected from other poor financial decisions, since in your mind they are not "financially sophisticated" and thus are more likely to engage in payday loans or other predatory financial institutions?'
SEC doesn't regulate those. I agree predatory lending should be reigned in though.