[dcolkitt]

Its interesting that’s the approach that securities law essentially takes. When it comes to certain “risky” investments (e.g. hedge funds, private real estate, venture capital), only “accredited investors” are allowed. Which basically means anybody with more than $1 million net worth.

The idea being that, we don’t want conmen ripping off widows and orphans with unregulated schemes. But if you’re reasonably wealthy, then you’re assumed to be a big boy who can make their own decisions. (The terms of these deals even include “big boy letters” where the parties acknowledge that they understand and accept the risk)