IB 

Union Calendar No. 275 

115TH CONGRESS 

1ST SESSION H. R. 1585 

[Report No. 115–375] 

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 

MARCH 16, 2017 

Mr. SCHWEIKERT (for himself, Ms. SINEMA, Mr. ROYCE of California, Mr. 

HILL, Mrs. CAROLYN B. MALONEY of New York, Mr. YOHO, Mr. 

LAMALFA, Mr. HULTGREN, Mr. GOTTHEIMER, Mr. DAVIDSON, and Mr. 

POLIS) introduced the following bill; which was referred to the Committee 

on Financial Services 

OCTOBER 31, 2017 

Additional sponsor: Mr. MESSER

OCTOBER 31, 2017 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 16, 2017] 


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•HR 1585 RH

A BILL 

To amend the Securities Act of 1933 to codify certain qualifications of individuals as accredited investors for purposes of the securities laws. 


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•HR 1585 RH

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 Oppor5 tunities 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 

11 (2) in subparagraph (A) (as so redesignated), by 

12 striking ‘‘; or’’ and inserting a semicolon, and insert13 ing after such subparagraph the following: 

14 ‘‘(B) any natural person whose individual 

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

16 spouse, exceeds $1,000,000 (which amount, along 

17 with the amounts set forth in subparagraph (C), 

18 shall be adjusted for inflation by the Commission 

19 every 5 years to the nearest $10,000 to reflect the 

20 change in the Consumer Price Index for All 

21 Urban Consumers published by the Bureau of 

22 Labor Statistics) where, for purposes of calcu23 lating net worth under this subparagraph— 

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

25 shall not be included as an asset; 


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1 ‘‘(ii) indebtedness that is secured by 

2 the person’s primary residence, up to the es3 timated fair market value of the primary 

4 residence at the time of the sale of securities, 

5 shall not be included as a liability (except 

6 that if the amount of such indebtedness out7 standing at the time of sale of securities ex8 ceeds the amount outstanding 60 days be9 fore such time, other than as a result of the 

10 acquisition of the primary residence, the 

11 amount of such excess shall be included as 

12 a liability); and 

13 ‘‘(iii) indebtedness that is secured by 

14 the person’s primary residence in excess of 

15 the estimated fair market value of the pri16 mary residence at the time of the sale of se17 curities shall be included as a liability; 

18 ‘‘(C) any natural person who had an indi19 vidual income in excess of $200,000 in each of 

20 the 2 most recent years or joint income with that 

21 person’s spouse in excess of $300,000 in each of 

22 those years and has a reasonable expectation of 

23 reaching the same income level in the current 

24 year; 


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

2 licensed or registered as a broker or investment 

3 adviser by the Commission, the Financial Indus4 try Regulatory Authority, or an equivalent self5 regulatory organization (as defined in section 

6 3(a)(26) of the Securities Exchange Act of 1934), 

7 or the securities division of a State or the equiv8 alent State division responsible for licensing or 

9 registration of individuals in connection with se10 curities activities; 

11 ‘‘(E) any natural person the Commission 

12 determines, by regulation, to have demonstrable 

13 education or job experience to qualify such per14 son as having professional knowledge of a subject 

15 related to a particular investment, and whose 

16 education or job experience is verified by the Fi17 nancial Industry Regulatory Authority or an 

18 equivalent self-regulatory organization (as de19 fined in section 3(a)(26) of the Securities Ex20 change Act of 1934); or’’. 

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

22 definition of accredited investor under Regulation D (17 

23 C.F.R. 230.501 et seq.) to conform with the amendments 

24 made by subsection (a). 


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Union Calendar No. 275 

115TH CONGRESS 

1ST SESSION H. R. 1585 

[Report No. 115–375] 

A BILL 

To amend the Securities Act of 1933 to codify cervestors for purposes of the securities laws. tain qualifications of individuals as accredited inOCTOBER 31, 2017 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


ethrower on DSK3G9T082PROD with BILLS