To amend the Securities Act of 1933 and the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to the definition of the term accredited investor, and for other purposes.
About This Bill
Committee
Latest Action · September 19, 2024
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
This bill would expand the ways individuals can qualify as accredited investors under federal securities law by allowing the Securities and Exchange Commission to recognize additional professional certifications, designations, and credentials beyond those currently permitted. Currently, accredited investor status, which allows people to invest in certain private securities offerings, is primarily based on income and net worth thresholds. The legislation would authorize the SEC to accept other credentials that demonstrate financial sophistication and knowledge, as long as they are comparable to certifications already approved by the SEC in a 2020 rule update. The bill requires the SEC to review and update the list of accepted credentials within 18 months of enactment and at least every five years thereafter, ensuring the standards stay current as financial credentials evolve. This change would potentially make accredited investor status accessible to a broader range of sophisticated investors who possess relevant professional credentials.
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