The Accredited Investor Definition Review Act would expand who can qualify as an "accredited investor" under federal securities law by allowing individuals with certain professional certifications, designations, or credentials to participate in private investment opportunities that are typically restricted to wealthy individuals. Currently, accredited investor status is primarily based on income thresholds (earning over $200,000 annually) or net worth requirements (over $1 million excluding primary residence), but this bill would add a third pathway based on professional qualifications that demonstrate financial sophistication. The legislation specifically references professional licenses that were previously designated in a 2020 SEC order, which included certain securities licenses and other financial certifications, and requires the SEC to consider similarly broad attributes when determining qualifying credentials. The bill also mandates that the SEC conduct periodic reviews of the approved certifications list, starting within 18 months of the bill's enactment and then at least every five years thereafter, to add new qualifying credentials and make necessary adjustments. This change would primarily affect financial professionals and other credentialed individuals who may not meet current income or wealth thresholds but possess relevant expertise to evaluate investment risks.
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