To amend the definition of an accredited investor to include individuals receiving advice from certain professionals, and for other purposes.

Bill: 118-hr-2773
Sponsor: full_name: Rep. McHenry, Patrick T. [R-NC-10]
Introduced: 2023-04-20
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-04-20
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2023-04-20
action_desc: Introduced in House
text: <p class="MsoNormal" style="line-height: normal;">This bill amends the definition of an accredited investor in the context of selling and purchasing securities to include those individuals receiving investment advice from a person with professional certifications, as determined by the Securities and Exchange Commission.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 2773 IN THE HOUSE OF REPRESENTATIVES April 20, 2023 Mr. McHenry introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the definition of an accredited investor to include individuals receiving advice from certain professionals, and for other purposes.

1. Accredited investors include individuals receiving advice from certain professionals (a) Securities Act of 1933 Section 2(a)(15) of the Securities Act of 1933 ( 15 U.S.C. 77b(a)(15) ) is amended— (1) by striking (15) The term accredited investor shall mean— and inserting the following: (15) Accredited investor (A) In general The term accredited investor means— ; (2) in clause (i), by striking or at the end; (3) in clause (ii), by striking the period at the end and inserting ; or ; (4) by adjusting the indentation of clauses (i) and (ii) by moving such clauses 2 ems to the right; and (5) by adding at the end the following: (iii) any individual receiving individualized investment advice or individualized investment recommendations with respect to the applicable transaction from an individual described under section 203.501(a)(10) of title 17, Code of Federal Regulations. (B) Definitions In subparagraph (A)(iii): (i) Investment advice The term investment advice shall be interpreted consistently with the interpretation of the phrase engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities under section 202(a)(11) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–2(a)(11) ). (ii) Investment recommendation The term investment recommendation shall be interpreted consistently with the interpretation of the term recommendation under section 240.15l–1 of title 17, Code of Federal Regulations. . (b) Conforming changes to regulations The Securities and Exchange Commission shall revise section 203.501(a) of title 17, Code of Federal Regulations, and any other definition of accredited investor in a rule of the Commission in the same manner as such definition is revised under subsection (a).