summary
Introduced
10/18/2019
10/18/2019
In Committee
10/18/2019
10/18/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To amend the Securities Act of 1933 to codify certain qualifications of individuals as accredited investors for purposes of the securities laws. This bill modifies the definition of "accredited investor" for purposes of participating in private offerings of securities to include an individual whose net worth or joint net worth with their spouse exceeds $1 million (adjusted for inflation), excluding from the calculation of their net worth their primary residence and a mortgage secured by that residence in certain circumstances; an individual whose income over the last two years exceeded $200,000 (adjusted for inflation) or joint spousal income exceeded $300,000 (adjusted for inflation) and who has a reasonable expectation of reaching the same income level in the current year; an individual who is licensed as a broker or investment advisor by certain entities; and an individual determined by the Securities and Exchange Commission (SEC) to have qualifying education or experience. (Certain unregistered securities may only be offered to accredited investors.) The SEC is directed to revise the definition of "accredited investor" in Regulation D (which exempts certain offerings from SEC registration requirements) to conform to changes in this bill.
AI Summary
This bill, the Fair Investment Opportunities for Professional Experts Act, amends the Securities Act of 1933 to modify the definition of "accredited investor" for purposes of participating in private offerings of securities. The key provisions are:
1. Individuals whose net worth or joint net worth with their spouse exceeds $1 million (adjusted for inflation), excluding their primary residence, can be considered accredited investors.
2. Individuals whose income over the last two years exceeded $200,000 (adjusted for inflation) or joint spousal income exceeded $300,000 (adjusted for inflation) and who have a reasonable expectation of reaching the same income level in the current year can be considered accredited investors.
3. Individuals licensed as brokers or investment advisors by certain entities can be considered accredited investors.
4. Individuals determined by the Securities and Exchange Commission (SEC) to have qualifying education or experience can be considered accredited investors.
The SEC is directed to revise the definition of "accredited investor" in Regulation D to conform to these changes. Certain unregistered securities may only be offered to accredited investors.
Committee Categories
Business and Industry
Sponsors (6)
French Hill (R)*,
Warren Davidson (R),
Tom Emmer (R),
Anthony Gonzalez (R),
David Schweikert (R),
Bryan Steil (R),
Last Action
Referred to the House Committee on Financial Services. (on 10/18/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/4762/all-info | 10/19/2019 |
| BillText | https://www.congress.gov/116/bills/hr4762/BILLS-116hr4762ih.pdf | 10/31/2019 |
| Bill | https://www.congress.gov/116/bills/hr4762/BILLS-116hr4762ih.pdf.pdf | 10/31/2019 |
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