Fair Investment Opportunities for Professional Experts Act
This bill expands the eligibility criteria for an accredited investor for purposes of participating in private offerings of securities to include an individual determined by the Securities and Exchange Commission (SEC) to have qualifying professional knowledge through educational or professional experience. (Certain unregistered securities may only be offered to accredited investors.)
The SEC is directed to revise the definition of accredited investor in Regulation D (which exempts certain offerings from SEC registration requirements) to conform to changes in this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 835 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 835
To amend the Securities Act of 1933 to codify certain qualifications of
individuals as accredited investors for purposes of the securities
laws.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2023
Mr. Hill (for himself and Mr. Schweikert) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Securities Act of 1933 to codify certain qualifications of
individuals as accredited investors for purposes of the securities
laws.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Investment Opportunities for
Professional Experts Act''.
SEC. 2. DEFINITION OF ACCREDITED INVESTOR.
(a) In General.--Section 2(a)(15) of the Securities Act of 1933 (15
U.S.C. 77b(a)(15)) is amended--
(1) by redesignating subparagraphs (i) and (ii) as
subparagraphs (A) and (F), respectively; and
(2) in subparagraph (A) (as so redesignated), by striking
``; or'' and inserting a semicolon, and inserting after such
subparagraph the following:
``(B) any natural person whose individual net
worth, or joint net worth with that person's spouse,
exceeds $1,000,000 (which amount, along with the
amounts set forth in subparagraph (C), shall be
adjusted for inflation by the Commission every 5 years
to the nearest $10,000 to reflect the change in the
Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics) where, for purposes
of calculating net worth under this subparagraph--
``(i) the person's primary residence shall
not be included as an asset;
``(ii) indebtedness that is secured by the
person's primary residence, up to the estimated
fair market value of the primary residence at
the time of the sale of securities, shall not
be included as a liability (except that if the
amount of such indebtedness outstanding at the
time of sale of securities exceeds the amount
outstanding 60 days before such time, other
than as a result of the acquisition of the
primary residence, the amount of such excess
shall be included as a liability); and
``(iii) indebtedness that is secured by the
person's primary residence in excess of the
estimated fair market value of the primary
residence at the time of the sale of securities
shall be included as a liability;
``(C) any natural person who had an individual
income in excess of $200,000 in each of the 2 most
recent years or joint income with that person's spouse
in excess of $300,000 in each of those years and has a
reasonable expectation of reaching the same income
level in the current year;
``(D) any natural person who is currently licensed
or registered as a broker or investment adviser by the
Commission, the Financial Industry Regulatory
Authority, or an equivalent self-regulatory
organization (as defined in section 3(a)(26) of the
Securities Exchange Act of 1934), or the securities
division of a State or the equivalent State division
responsible for licensing or registration of
individuals in connection with securities activities;
``(E) any natural person the Commission determines,
by regulation, to have demonstrable education or job
experience to qualify such person as having
professional knowledge of a subject related to a
particular investment, and whose education or job
experience is verified by the Financial Industry
Regulatory Authority or an equivalent self-regulatory
organization (as defined in section 3(a)(26) of the
Securities Exchange Act of 1934); or''.
(b) Rulemaking.--The Commission shall revise the definition of
accredited investor under Regulation D (17 CFR 230.501 et seq.) to
conform with the amendments made by subsection (a).
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Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 118-87.
Reported (Amended) by the Committee on Financial Services. H. Rept. 118-87.
Placed on the Union Calendar, Calendar No. 64.
Mrs. Wagner moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H2717-2719)
DEBATE - The House proceeded with forty minutes of debate on H.R. 835.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2717)
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On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2717)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.