I 

116TH CONGRESS 

1ST SESSION H. R. 4762 

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 

OCTOBER 18, 2019 

Mr. HILL of Arkansas (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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fair Investment Op5 portunities for Professional Experts Act’’. 

6 SEC. 2. DEFINITION OF ACCREDITED INVESTOR. 

7 (a) IN GENERAL.—Section 2(a)(15) of the Securities 

8 Act of 1933 (15 U.S.C. 77b(a)(15)) is amended— 

9 (1) by redesignating clauses (i) and (ii) as sub10 paragraphs (A) and (F), respectively; and 


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1 (2) in subparagraph (A) (as so redesignated), 

2 by striking ‘‘; or’’ and inserting a semicolon, and in3 serting after such subparagraph the following: 

4 ‘‘(B) any natural person whose individual 

5 net worth, or joint net worth with that person’s 

6 spouse, exceeds $1,000,000 (which amount, 

7 along with the amounts set forth in subpara8 graph (C), shall be adjusted for inflation by the 

9 Commission every 5 years to the nearest 

10 $10,000 to reflect the change in the Consumer 

11 Price Index for All Urban Consumers published 

12 by the Bureau of Labor Statistics) where, for 

13 purposes of calculating net worth under this 

14 subparagraph— 

15 ‘‘(i) the person’s primary residence 

16 shall not be included as an asset; 

17 ‘‘(ii) indebtedness that is secured by 

18 the person’s primary residence, up to the 

19 estimated fair market value of the primary 

20 residence at the time of the sale of securi21 ties, shall not be included as a liability (ex22 cept that if the amount of such indebted23 ness outstanding at the time of sale of se24 curities exceeds the amount outstanding 60 

25 days before such time, other than as a reVerDate Sep 11 2014 23:26 Oct 26, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4762.IH H4762

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1 sult of the acquisition of the primary resi2 dence, the amount of such excess shall be 

3 included as a liability); and 

4 ‘‘(iii) indebtedness that is secured by 

5 the person’s primary residence in excess of 

6 the estimated fair market value of the pri7 mary residence at the time of the sale of 

8 securities shall be included as a liability; 

9 ‘‘(C) any natural person who had an indi10 vidual income in excess of $200,000 in each of 

11 the 2 most recent years or joint income with 

12 that person’s spouse in excess of $300,000 in 

13 each of those years and has a reasonable expec14 tation of reaching the same income level in the 

15 current year; 

16 ‘‘(D) any natural person who is currently 

17 licensed or registered as a broker or investment 

18 adviser by the Commission, the Financial In19 dustry Regulatory Authority, or an equivalent 

20 self-regulatory organization (as defined in sec21 tion 3(a)(26) of the Securities Exchange Act of 

22 1934), or the securities division of a State or 

23 the equivalent State division responsible for li24 censing or registration of individuals in connec25 tion with securities activities; 


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1 ‘‘(E) any natural person the Commission 

2 determines, by regulation, to have demonstrable 

3 education or job experience to qualify such per4 son as having professional knowledge of a sub5 ject related to a particular investment, and 

6 whose education or job experience is verified by 

7 the Financial Industry Regulatory Authority or 

8 an equivalent self-regulatory organization (as 

9 defined in section 3(a)(26) of the Securities Ex10 change Act of 1934); or’’. 

11 (b) RULEMAKING.—The Commission shall revise the 

12 definition of accredited investor under Regulation D (17 

13 CFR 230.501 et seq.) to conform with the amendments 

14 made by subsection (a). 

Æ 


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