Equal Opportunity for All Investors Act of 2021

Bill: 117-hr-4776
Sponsor: full_name: Rep. McHenry, Patrick T. [R-NC-10]
Introduced: 2021-07-28
Policy area: Finance and Financial Sector
Latest action: action_date: 2021-07-28
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2021-07-28
action_desc: Introduced in House
text: <p><strong>Equal Opportunity for All Investors Act of 2021</strong></p> <p>This bill expands 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. </p> <p>Specifically, the bill allows an individual to qualify through an examination established by the Securities and Exchange Commission. The examination </p> <ul> <li>must ensure that to be designated as an accredited investor, an individual understands and appreciates the risks of investing in private companies; </li> <li>must be designed to ensure that an individual with financial sophistication or training would be unlikely to fail; and </li> <li>may be administered by a registered national securities association. </li> </ul> <p>Currently, accredited investors must satisfy certain requirements indicating their reduced exposure to financial risk, including those related to income, net worth, or knowledge and experience.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 4776 IN THE HOUSE OF REPRESENTATIVES July 28, 2021 Mr. McHenry introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Securities Act of 1933 to require certification examinations for accredited investors, and for other purposes.

1. Short title This Act may be cited as the Equal Opportunity for All Investors Act of 2021 . 2. Certification examinations for accredited investors (a) Examination required 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) any individual who is certified as an accredited investor through an examination established by the Commission that— (i) ensures that an individual certified as an accredited investor pursuant to such examination understands and appreciates the risks of investing in private companies; (ii) is designed to ensure that an individual with financial sophistication or training would be unlikely to fail; and (iii) may be administered by a registered national securities association under section 15A of the Securities Exchange Act of 1934 ( 15 U.S.C. 78o–3 ). . (b) Effective date The amendments made by subsection (a) shall take effect on the date that is 2 years after the date of the enactment of this Act.