[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 835 Referred in Senate (RFS)]
<DOC>
118th CONGRESS
1st Session
H. R. 835
_______________________________________________________________________
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 to codify certain qualifications of
individuals as accredited investors for purposes of the securities
laws.
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 ``Fair Investment Opportunities for
Professional Experts Act''.
SEC. 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 subparagraphs (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 or
spousal equivalent, 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
or spousal equivalent 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, the District of Columbia, or a
territory of the United States or the equivalent
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 June 5, 2023.
Attest:
CHERYL L. JOHNSON,
Clerk.