Accredited Investor Definition Review Act
Bill: H.R.4708 | Sponsor: Rep. Huizenga, Bill (R-MI)
Policy area: Finance and Financial Sector

Summary:
Accredited Investor Definition Review Act
This bill revises who may be considered an accredited investor for purposes of participating in private offerings of securities. Certain unregistered securities may only be offered to accredited investors.
Specifically, the bill allows the Securities and Exchange Commission (SEC) discretion in determining what certifications, designations, or credentials investors must possess for purposes of investor protection, provided that the credentials are at least as broad as the existing regulations. Additionally, the SEC must review these credentials every five years.

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.

    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. 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 subparagraphs (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 as the Commission 
                determines necessary or appropriate in the public 
                interest or for the protection of investors, where such 
                list of certifications, designations, or credentials 
                shall be no 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 titled `Accredited Investor Definition' (85 
                Fed. Reg. 64234; published 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 the 
        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 rules 
                issued pursuant to such section;
                    ``(B) 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
                    ``(C) adjust or modify such list as the Commission 
                determines necessary or appropriate in the public 
                interest or for the protection of investors.''.
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