Accredited Investor Definition Review Act

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5121 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 5121

  To amend the Securities Act of 1933 and the Dodd-Frank Wall Street 
 Reform and Consumer Protection Act with respect to the definition of 
       the term ``accredited investor'', and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 19, 2024

  Mr. Hagerty introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the Securities Act of 1933 and the Dodd-Frank Wall Street 
 Reform and Consumer Protection Act with respect to the definition of 
       the term ``accredited investor'', and for other purposes.

    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 ``Accredited Investor Definition 
Review Act''.

SEC. 2. CERTIFICATIONS, DESIGNATIONS, AND CREDENTIALS UNDER THE 
              DEFINITION OF ACCREDITED INVESTOR.

    Section 2(a)(15) of the Securities Act of 1933 (15 U.S.C. 
77b(a)(15)) is amended--
            (1) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively;
            (2) in subparagraph (A), as so redesignated, by striking 
        ``adviser; or'' and inserting ``adviser;'';
            (3) in subparagraph (B), as so redesignated, by striking 
        the period at the end and inserting ``; or''; and
            (4) by adding at the end the following:
                    ``(C) an individual holding such certifications, 
                designations, or credentials--
                            ``(i) as the Commission determines 
                        necessary or appropriate in the public interest 
                        or for the protection of investors; and
                            ``(ii) that are not less broad than those 
                        certifications, designations, or credentials 
                        described in the amendments made to section 
                        230.501 of title 17, Code of Federal 
                        Regulations, by the final rule of the 
                        Commission entitled `Accredited Investor 
                        Definition' (85 Fed. Reg. 64234 (October 9, 
                        2020)).''.

SEC. 3. PERIODIC REVIEW OF CERTIFICATIONS, DESIGNATIONS, AND 
              CREDENTIALS.

    Section 413(b) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (15 U.S.C. 77b note) is amended by adding at the end the 
following:
            ``(3) Periodic review of certifications, designations, and 
        credentials.--Not later than 18 months after the date of 
        enactment of this paragraph and not less frequently than once 
        every 5 years thereafter, the Commission shall--
                    ``(A) review the list of certifications, 
                designations, and credentials accepted with respect to 
                meeting the requirements of the definition of 
                `accredited investor' under section 2(a)(15) of the 
                Securities Act of 1933 (15 U.S.C. 77b(a)(15)) and the 
                rules issued under such section 2(a)(15);
                    ``(B) add such certifications, designations, and 
                credentials to the list described in subparagraph (A) 
                as the Commission determines are substantially similar 
                in measuring the financial sophistication, knowledge, 
                and experience in financial matters of an individual to 
                the certifications, designations, and credentials 
                included on that list at the time of that review; and
                    ``(C) adjust or modify that list as the Commission 
                determines necessary or appropriate in the public 
                interest or for the protection of investors.''.
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