Bill to Expand Accredited Investor Pool Sails Through House of Representatives
The House of Representatives overwhelmingly passed a bipartisan bill 347-8 that directs the Securities and Exchange Commission to expand its definition of an accredited investor under Regulation D rules.
Currently, all accredited investors must have an individual income of $200,000, a joint income of $300,000, or a net worth that exceeds $1 million – not including their primary residence.
Under The Fair Investment Opportunities for Professional Experts Act (H.R. 2187), sponsored by Rep. Schweikert (R-AZ) and Rep. Kyrsten Sinema (D-AZ), a licensed broker or investment adviser can be considered an accredited investor regardless of income or net worth.
In addition, those with professional knowledge relating to a particular investment can also participate in private placements if qualified based on education history or job experience.
In a report by the staff of the SEC late last year, the authors recommended that the agency “revise the accredited investor definition to allow individuals to qualify as accredited investors based on criteria other than income and net worth.”
The bill was introduced in the Senate on Tuesday and referred to the Committee on Banking, Housing, and Urban Affairs.
