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118TH CONGRESS
1ST SESSION H. R. 2773
To amend the definition of an accredited investor to include individuals
receiving advice from certain professionals, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 20, 2023
Mr. MCHENRY introduced the following bill; which was referred to the
Committee on Financial Services
A BILL
To amend the definition of an accredited investor to include
individuals receiving advice from certain professionals,
and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. ACCREDITED INVESTORS INCLUDE INDIVID-
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UALS RECEIVING ADVICE FROM CERTAIN
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PROFESSIONALS.
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(a) SECURITIES ACT OF 1933.—Section 2(a)(15) of
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the Securities Act of 1933 (15 U.S.C. 77b(a)(15)) is
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amended—
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(1) by striking ‘‘(15) The term ‘accredited in-
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vestor’ shall mean—’’ and inserting the following:
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•HR 2773 IH
‘‘(15) ACCREDITED INVESTOR.—
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‘‘(A) IN GENERAL.—The term ‘accredited
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investor’ means—’’;
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(2) in clause (i), by striking ‘‘or’’ at the end;
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(3) in clause (ii), by striking the period at the
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end and inserting ‘‘; or’’;
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(4) by adjusting the indentation of clauses (i)
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and (ii) by moving such clauses 2 ems to the right;
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and
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(5) by adding at the end the following:
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‘‘(iii) any individual receiving individ-
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ualized investment advice or individualized
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investment recommendations with respect
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to the applicable transaction from an indi-
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vidual
described
under
section
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203.501(a)(10) of title 17, Code of Federal
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Regulations.
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‘‘(B)
DEFINITIONS.—In
subparagraph
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(A)(iii):
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‘‘(i) INVESTMENT ADVICE.—The term
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‘investment advice’ shall be interpreted
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consistently with the interpretation of the
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phrase ‘engages in the business of advising
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others, either directly or through publica-
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tions or writings, as to the value of securi-
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•HR 2773 IH
ties or as to the advisability of investing in,
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purchasing, or selling securities’ under sec-
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tion 202(a)(11) of the Investment Advisers
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Act of 1940 (15 U.S.C. 80b–2(a)(11)).
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‘‘(ii)
INVESTMENT
RECOMMENDA-
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TION.—The term ‘investment recommenda-
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tion’ shall be interpreted consistently with
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the interpretation of the term ‘rec-
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ommendation’ under section 240.15l–1 of
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title 17, Code of Federal Regulations.’’.
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(b) CONFORMING CHANGES TO REGULATIONS.—The
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Securities and Exchange Commission shall revise section
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203.501(a) of title 17, Code of Federal Regulations, and
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any other definition of ‘‘accredited investor’’ in a rule of
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the Commission in the same manner as such definition
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is revised under subsection (a).
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