IB 

Union Calendar No. 309 

114TH CONGRESS 

2D SESSION H. R. 2187 

[Report No. 114–406] 

To direct the Securities and Exchange Commission to revise its regulations 

regarding the qualifications of natural persons as accredited investors. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 30, 2015 

Mr. SCHWEIKERT introduced the following bill; which was referred to the 

Committee on Financial Services 

FEBRUARY 1, 2016 

Additional sponsor: Ms. SINEMA

FEBRUARY 1, 2016 

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 April 30, 2015] 


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•HR 2187 RH

A BILL 

To direct the Securities and Exchange Commission to revise 

its regulations regarding the qualifications of natural 

persons as accredited investors. 


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•HR 2187 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 Section 2(a)(15) of the Securities Act of 1933 (15 

8 U.S.C. 77b(a)(15) is amended— 

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

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 five years to the nearest $10,000 to reflect 

20 the 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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•HR 2187 RH

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 two most recent years or joint income with 

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

22 each of those years and has a reasonable expecta23 tion of reaching the same income level in the 

24 current year; 


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•HR 2187 RH

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’’. 


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Union Calendar No. 309 

114TH CONGRESS 

2D SESSION H. R. 2187 

[Report No. 114–406] 

A BILL 

To direct the Securities and Exchange Commission 

tions of natural persons as accredited investors. to revise its regulations regarding the qualificaFEBRUARY 1, 2016 

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


tkelley on DSK3SPTVN1PROD with BILLS