Fair Investment Opportunities for Professional Experts Act

Bill: 115-hr-1585
Sponsor: full_name: Rep. Schweikert, David [R-AZ-6]
Introduced: 2017-03-16
Policy area: Finance and Financial Sector
Subjects: Financial services and investments

Securities
Latest action: action_date: 2017-11-02
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2017-03-16
action_desc: Introduced in House
text: <p>This bill amends the Securities Act of 1933 to modify the definition of &quot;accredited investor&quot; for purposes of participating in private offerings to include:</p> <ul> <li>an individual whose net worth, or joint net worth with their spouse, exceeds $1 million, excluding their primary residence;</li> <li>an individual whose income over the last two years exceeded $200,000, or joint spousal income exceeded $300,000;</li> <li>an individual who holds a state-issued financial services license; and</li> <li>an individual determined by the Securities and Exchange Commission to have qualifying education or experience.</li> </ul>

action_date: 2017-10-31
action_desc: Reported to House with amendment(s)
text: <p><b>Fair Investment Opportunities for Professional Experts Act</b></p> <p>(Sec. 2) This bill amends the Securities Act of 1933 to modify the definition of &quot;accredited investor&quot; for purposes of participating in private offerings to include: </p> <ul> <li>an individual whose net worth or joint net worth with their spouse exceeds $1 million (adjusted for inflation), excluding from the calculation of their net worth their primary residence and a mortgage secured by that residence in certain circumstances; </li> <li>an individual whose income over the last two years exceeded $200,000 (adjusted for inflation) or joint spousal income exceeded $300,000 (adjusted for inflation) and who has a reasonable expectation of reaching the same income level in the current year; </li> <li>an individual who is licensed as a broker or investment advisor by certain entities; and </li> <li>an individual determined by the Securities and Exchange Commission (SEC) to have qualifying education or experience. </li> </ul> <p>(Certain unregistered securities may only be offered to accredited investors.)</p> <p>The SEC is directed to revise the definition of &quot;accredited investor&quot; in Regulation D (which exempts certain offerings from SEC registration requirements) to conform to changes in this bill.</p>

action_date: 2017-11-01
action_desc: Passed House amended
text: <p>(This measure has not been amended since it was reported to the House on October 31, 2017. The summary of that version is repeated here.)</p> <p><b>Fair Investment Opportunities for Professional Experts Act</b></p> <p>(Sec. 2) This bill amends the Securities Act of 1933 to modify the definition of &quot;accredited investor&quot; for purposes of participating in private offerings to include: </p> <ul> <li>an individual whose net worth or joint net worth with their spouse exceeds $1 million (adjusted for inflation), excluding from the calculation of their net worth their primary residence and a mortgage secured by that residence in certain circumstances; </li> <li>an individual whose income over the last two years exceeded $200,000 (adjusted for inflation) or joint spousal income exceeded $300,000 (adjusted for inflation) and who has a reasonable expectation of reaching the same income level in the current year; </li> <li>an individual who is licensed as a broker or investment advisor by certain entities; and </li> <li>an individual determined by the Securities and Exchange Commission (SEC) to have qualifying education or experience. </li> </ul> <p>(Certain unregistered securities may only be offered to accredited investors.)</p> <p>The SEC is directed to revise the definition of &quot;accredited investor&quot; in Regulation D (which exempts certain offerings from SEC registration requirements) to conform to changes in this bill.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 1585 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 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. Definition of accredited investor Section 2(a)(15)(ii) of the Securities Act of 1933 ( 15 U.S.C. 77b(a)(15)(ii) ) is amended by striking the period at the end and inserting the following: , and shall include— (I) any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000, not including the value of such person’s primary residence owned either individually or jointly with his or her spouse; (II) any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; (III) any natural person who holds a current financial services-related license issued by a State; and (IV) any natural person the Commission determines, by regulation, to have demonstrable education or job experience to qualify such person as having professional knowledge of a subject related to a particular investment, and whose education or job experience is verified by the Financial Industry Regulatory Authority. .

tv_txt: IB Union Calendar No. 275 115th CONGRESS 1st Session H. R. 1585 [Report No. 115–375] 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 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. Short title This Act may be cited as the Fair Investment Opportunities for Professional Experts Act . 2. Definition of accredited investor (a) In general Section 2(a)(15) of the Securities Act of 1933 ( 15 U.S.C. 77b(a)(15) is amended— (1) by redesignating clauses (i) and (ii) as subparagraphs (A) and (F), respectively; and (2) in subparagraph (A) (as so redesignated), by striking ; or and inserting a semicolon, and inserting after such subparagraph the following: (B) any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (which amount, along with the amounts set forth in subparagraph (C), shall be adjusted for inflation by the Commission every 5 years to the nearest $10,000 to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics) where, for purposes of calculating net worth under this subparagraph— (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability; (C) any natural person who had an individual income in excess of $200,000 in each of the 2 most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; (D) any natural person who is currently licensed or registered as a broker or investment adviser by the Commission, the Financial Industry Regulatory Authority, or an equivalent self-regulatory organization (as defined in section 3(a)(26) of the Securities Exchange Act of 1934), or the securities division of a State or the equivalent State division responsible for licensing or registration of individuals in connection with securities activities; (E) any natural person the Commission determines, by regulation, to have demonstrable education or job experience to qualify such person as having professional knowledge of a subject related to a particular investment, and whose education or job experience is verified by the Financial Industry Regulatory Authority or an equivalent self-regulatory organization (as defined in section 3(a)(26) of the Securities Exchange Act of 1934); or . (b) Rulemaking The Commission shall revise the definition of accredited investor under Regulation D (17 C.F.R. 230.501 et seq.) to conform with the amendments made by subsection (a).

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

tv_txt: IIB 115th CONGRESS 1st Session H. R. 1585 IN THE SENATE OF THE UNITED STATES November 2, 2017 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To amend the Securities Act of 1933 to codify certain qualifications of individuals as accredited investors for purposes of the securities laws.

1. Short title This Act may be cited as the Fair Investment Opportunities for Professional Experts Act . 2. Definition of accredited investor (a) In general Section 2(a)(15) of the Securities Act of 1933 ( 15 U.S.C. 77b(a)(15) is amended— (1) by redesignating clauses (i) and (ii) as subparagraphs (A) and (F), respectively; and (2) in subparagraph (A) (as so redesignated), by striking ; or and inserting a semicolon, and inserting after such subparagraph the following: (B) any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (which amount, along with the amounts set forth in subparagraph (C), shall be adjusted for inflation by the Commission every 5 years to the nearest $10,000 to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics) where, for purposes of calculating net worth under this subparagraph— (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability; (C) any natural person who had an individual income in excess of $200,000 in each of the 2 most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; (D) any natural person who is currently licensed or registered as a broker or investment adviser by the Commission, the Financial Industry Regulatory Authority, or an equivalent self-regulatory organization (as defined in section 3(a)(26) of the Securities Exchange Act of 1934), or the securities division of a State or the equivalent State division responsible for licensing or registration of individuals in connection with securities activities; (E) any natural person the Commission determines, by regulation, to have demonstrable education or job experience to qualify such person as having professional knowledge of a subject related to a particular investment, and whose education or job experience is verified by the Financial Industry Regulatory Authority or an equivalent self-regulatory organization (as defined in section 3(a)(26) of the Securities Exchange Act of 1934); or . (b) Rulemaking The Commission shall revise the definition of accredited investor under Regulation D (17 CFR 230.501 et seq.) to conform with the amendments made by subsection (a).

Passed the House of Representatives November 1, 2017. Karen L. Haas, Clerk

tv_txt: IB 115th CONGRESS 1st Session H. R. 1585 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Securities Act of 1933 to codify certain qualifications of individuals as accredited investors for purposes of the securities laws.

1. Short title This Act may be cited as the Fair Investment Opportunities for Professional Experts Act . 2. Definition of accredited investor (a) In general Section 2(a)(15) of the Securities Act of 1933 ( 15 U.S.C. 77b(a)(15) is amended— (1) by redesignating clauses (i) and (ii) as subparagraphs (A) and (F), respectively; and (2) in subparagraph (A) (as so redesignated), by striking ; or and inserting a semicolon, and inserting after such subparagraph the following: (B) any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (which amount, along with the amounts set forth in subparagraph (C), shall be adjusted for inflation by the Commission every 5 years to the nearest $10,000 to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics) where, for purposes of calculating net worth under this subparagraph— (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability; (C) any natural person who had an individual income in excess of $200,000 in each of the 2 most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; (D) any natural person who is currently licensed or registered as a broker or investment adviser by the Commission, the Financial Industry Regulatory Authority, or an equivalent self-regulatory organization (as defined in section 3(a)(26) of the Securities Exchange Act of 1934), or the securities division of a State or the equivalent State division responsible for licensing or registration of individuals in connection with securities activities; (E) any natural person the Commission determines, by regulation, to have demonstrable education or job experience to qualify such person as having professional knowledge of a subject related to a particular investment, and whose education or job experience is verified by the Financial Industry Regulatory Authority or an equivalent self-regulatory organization (as defined in section 3(a)(26) of the Securities Exchange Act of 1934); or . (b) Rulemaking The Commission shall revise the definition of accredited investor under Regulation D (17 CFR 230.501 et seq.) to conform with the amendments made by subsection (a).

Passed the House of Representatives November 1, 2017. Karen L. Haas, Clerk.