You actually mean 'accredited investor', someone who matches this definition below. Such a person is assumed to be sophisticated enough to not need the umbrella of protections defined in the Investment_Company_Act_of_1940 and the Investment_Advisers_Act_of_1940.
Accredited:
http://www.sec.gov/answers/accred.htm
The Acts:
http://en.wikipedia.org/wiki/Investm...ny_Act_of_1940
http://en.wikipedia.org/wiki/Investm...rs_Act_of_1940