Accredited Investor Definition Review Act

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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 00:50 Jun 07, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1579.RFS H1579 kjohnson on DSK79L0C42PROD with BILLS 2 HR 1579 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Accredited Investor 2 Definition Review Act’’. 3 SEC. 2. CERTIFICATIONS, DESIGNATIONS, AND CREDEN- 4 TIALS UNDER THE DEFINITION OF ACCRED- 5 ITED INVESTOR. 6 Section 2(a)(15) of the Securities Act of 1933 (15 7 U.S.C. 77b(a)(15)) is amended— 8 (1) by redesignating clauses (i) and (ii) as sub- 9 paragraphs (A) and (B), respectively; 10 (2) in subparagraph (A), as so redesignated, by 11 striking ‘‘adviser; or’’ and inserting ‘‘adviser;’’; 12 (3) in subparagraph (B), as so redesignated, by 13 striking the period at the end and inserting ‘‘; or’’; 14 and 15 (4) by adding at the end the following: 16 ‘‘(C) an individual holding such certifi- 17 cations, designations, or credentials as the 18 Commission determines necessary or appro- 19 priate in the public interest or for the protec- 20 tion of investors, where such list of certifi- 21 cations, designations, or credentials shall be no 22 less broad than those certifications, designa- 23 tions, or credentials described in the amend- 24 ments made to section 230.501 of title 17, Code 25 of Federal Regulations, by the final rule of the 26 VerDate Sep 11 2014 00:50 Jun 07, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1579.RFS H1579 kjohnson on DSK79L0C42PROD with BILLS 3 HR 1579 RFS Commission titled ‘Accredited Investor Defini- 1 tion’ (85 Fed. Reg. 64234; published October 9, 2 2020).’’. 3 SEC. 3. PERIODIC REVIEW OF CERTIFICATIONS, DESIGNA- 4 TIONS, AND CREDENTIALS. 5 Section 413(b) of the Dodd-Frank Wall Street Re- 6 form and Consumer Protection Act (15 U.S.C. 77b note) 7 is amended by adding at the end the following: 8 ‘‘(3) PERIODIC REVIEW OF CERTIFICATIONS, 9 DESIGNATIONS, AND CREDENTIALS.—Not later than 10 18 months after the date of the enactment of this 11 paragraph and not less frequently than once every 5 12 years thereafter, the Commission shall— 13 ‘‘(A) review the list of certifications, des- 14 ignations, and credentials accepted with respect 15 to meeting the requirements of the definition of 16 ‘accredited investor’ under section 2(a)(15) of 17 the Securities Act of 1933 (15 U.S.C. 18 77b(a)(15)) and rules issued pursuant to such 19 section; 20 ‘‘(B) add such certifications, designations, 21 and credentials to such list as the Commission 22 determines are substantially similar in meas- 23 uring the financial sophistication, knowledge, 24 and experience in financial matters of an indi- 25 VerDate Sep 11 2014 00:50 Jun 07, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1579.RFS H1579 kjohnson on DSK79L0C42PROD with BILLS 4 HR 1579 RFS vidual to the certifications, designations, and 1 credentials included on such list at the time of 2 such review; and 3 ‘‘(C) adjust or modify such list as the 4 Commission determines necessary or appro- 5 priate in the public interest or for the protec- 6 tion of investors.’’. 7 Passed the House of Representatives June 5, 2023. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 00:50 Jun 07, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1579.RFS H1579 kjohnson on DSK79L0C42PROD with BILLS