HR 3348
Accredited Investor Definition Review Act
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Bill overview
This bill updates the definition of an ‘accredited investor’ under securities laws. It expands the list of professional certifications, designations, and credentials that qualify an individual as an accredited investor, as determined by the Securities and Exchange Commission (SEC). The bill also requires the SEC to periodically review and update this list to ensure it accurately reflects financial sophistication and investor protection.
Key provisions
- Expands the list of qualifying professional certifications, designations, and credentials for accredited investor status.
- Specifically references the SEC’s Order Designating Certain Professional Licenses as Qualifying Natural Persons for Accredited Investor Status.
- Requires the SEC to review the accredited investor list every 5 years.
- Allows the SEC to add or modify certifications and designations based on their similarity to existing qualifications.
- Mandates a periodic review of the accredited investor list no less frequently than every 5 years.
- Directs the SEC to consider attributes similar to those used in amending section 230.501(a)(10) of the Code of Federal Regulations.
- Updates the Securities Act of 1933 and the Dodd-Frank Wall Street Reform and Consumer Protection Act to reflect these changes.
Who is affected
- Investors
- Financial professionals (e.g., certified financial planners, lawyers)
- The Securities and Exchange Commission (SEC)
- Financial institutions
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119th CONGRESS — 1st Session
H. R. 3348
IN THE HOUSE OF REPRESENTATIVES
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 accredited investor, and for other purposes.
This Act may be cited as the Accredited Investor Definition Review Act
.
Section 2(a)(15) of the Securities Act of 1933 (15 U.S.C. 77b(a)(15)) is amended—
by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively;
in subparagraph (A), as so redesignated, by striking adviser; or
and inserting adviser;
;
in subparagraph (B), as so redesignated, by striking the period at the end and inserting ; or
; and
by adding at the end the following:
Order Designating Certain Professional Licenses as Qualifying Natural Persons for Accredited Investor Status(85 Fed. Reg. 64234; published October 9, 2020); and
Accredited Investor Definition(85 Fed. Reg. 64234; published October 9, 2020).
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:
add such certifications, designations, and credentials to such list 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 such list at the time of such review; and
adjust or modify such list as the Commission determines necessary or appropriate in the public interest or for the protection of investors.