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.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill expands who can qualify as an "accredited investor" under securities law. Currently, accredited investors must meet high wealth/income thresholds to invest in private offerings. This bill allows people with certain professional financial certifications to qualify regardless of their wealth.
Who Benefits and How
- Financial professionals with certifications (CFAs, CPAs, licensed broker-dealers) benefit by gaining access to private investment opportunities previously restricted to high-net-worth individuals
- Private securities issuers (startups, private equity funds) benefit from a larger pool of potential investors
- Professional certification bodies may see increased demand for their credentials
Who Bears the Burden and How
- The SEC must conduct periodic reviews (every 18 months initially, then every 5 years) of qualifying certifications
- Retail investors without certifications remain excluded from these investment opportunities
Key Provisions
- Codifies SEC's 2020 rule allowing certification-based accredited investor qualification
- Mandates SEC review the list of qualifying certifications every 5 years
- Requires SEC to add certifications that demonstrate similar financial sophistication
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Expands the definition of accredited investor to include individuals holding certain professional certifications, designations, or credentials as determined by the SEC
Key Policy Areas
Securities, Financial Regulation, Investor Protection
Primary Purpose
Expands the definition of accredited investor to include individuals holding certain professional certifications, designations, or credentials as determined by the SEC
Policy Domains
Main Bill
Identified Gains
- Financial professionals with certifications
- Private securities issuers
- Investment funds
Identified Costs
- Securities and Exchange Commission
Sponsors
Legislative Progress
Passed HouseReceived; read twice and referred to the Committee on Banking, …
Additional sponsor: Mr. Lawler
Reported with an amendment, committed to the Committee of the …
Mr. Huizenga introduced the following bill; which was referred to …
Passed House (inferred from eh version)
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Financial professionals with certifications (CFAs, CPAs, licensed brokers), Private securities issuers and investment funds
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_commission"
- → Securities and Exchange Commission (SEC)
Key Definitions
Terms defined in this bill
Under amendments, includes individuals holding certifications/credentials determined by SEC to demonstrate financial sophistication
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology