Accredited Investor Definition Review Act

Bill: 118-hr-1579
Sponsor: full_name: Rep. Huizenga, Bill [R-MI-4]
Introduced: 2023-03-14
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Financial services and investments

Licensing and registrations

Securities

Securities and Exchange Commission (SEC)
Latest action: action_date: 2023-06-06
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-03-14
action_desc: Introduced in House
text: <p><strong>Accredited Investor Definition Review Act </strong></p> <p>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. </p> <p>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. </p>

action_date: 2023-06-05
action_desc: Passed House
text: <p><strong>Accredited Investor Definition Review Act </strong></p> <p>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. </p> <p>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. </p>

tv_txt: IIB 118th CONGRESS 1st Session H. R. 1579 IN THE SENATE OF THE UNITED STATES June 6, 2023 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT 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.

1. Short title This Act may be cited as the Accredited Investor Definition Review Act . 2. Certifications, designations, and credentials under the 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 clauses (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). . 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. .

Passed the House of Representatives June 5, 2023. Cheryl L. Johnson, Clerk.

tv_txt: I 118th CONGRESS 1st Session H. R. 1579 IN THE HOUSE OF REPRESENTATIVES AN ACT 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.

1. Short title This Act may be cited as the Accredited Investor Definition Review Act . 2. Certifications, designations, and credentials under the 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 clauses (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). . 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. .

Passed the House of Representatives June 5, 2023. Cheryl L. Johnson, Clerk.

tv_txt: IB Union Calendar No. 69 118th CONGRESS 1st Session H. R. 1579 [Report No. 118–92] IN THE HOUSE OF REPRESENTATIVES March 14, 2023 Mr. Huizenga introduced the following bill; which was referred to the Committee on Financial Services June 5, 2023 Additional sponsor: Mr. Lawler June 5, 2023 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 14, 2023 A BILL 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.

1. Short title This Act may be cited as the Accredited Investor Definition Review Act . 2. Certifications, designations, and credentials under the 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 clauses (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). . 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. .

June 5, 2023 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: I 118th CONGRESS 1st Session H. R. 1579 IN THE HOUSE OF REPRESENTATIVES March 14, 2023 Mr. Huizenga introduced the following bill; which was referred to the Committee on Financial Services A BILL 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.

1. Short title This Act may be cited as the Accredited Investor Definition Review Act . 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 clauses (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). . 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. .