HR2773-118

1. Accredited investors include individuals receiving advice from certain professionals Section 2(a)(15) of the Securities Act of 1933 (15 U.S.C. 77b(a)(15)) is amended— by striking (15) The term accredited investor shall mean— and inserting the following: The term accredited investor means— in clause (i), by striking or at the end; in clause (ii), by striking the period at the end and inserting ; or; by adjusting the indentation of clauses (i) and (ii) by moving such clauses 2 ems to the right; and by adding at the end the following: any individual receiving individualized investment advice or individualized investment recommendations with respect to the applicable transaction from an individual described under section 203.501(a)(10) of title 17, Code of Federal Regulations. In subparagraph (A)(iii): The term investment advice shall be interpreted consistently with the interpretation of the phrase engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities under section 202(a)(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(11)). The term investment recommendation shall be interpreted consistently with the interpretation of the term recommendation under section 240.15l–1 of title 17, Code of Federal Regulations. The Securities and Exchange Commission shall revise section 203.501(a) of title 17, Code of Federal Regulations, and any other definition of accredited investor in a rule of the Commission in the same manner as such definition is revised under subsection (a). (15)Accredited investor(A)In generalThe term accredited investor means—; (iii)any individual receiving individualized investment advice or individualized investment recommendations with respect to the applicable transaction from an individual described under section 203.501(a)(10) of title 17, Code of Federal Regulations.(B)DefinitionsIn subparagraph (A)(iii):(i)Investment adviceThe term investment advice shall be interpreted consistently with the interpretation of the phrase engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities under section 202(a)(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(11)).(ii)Investment recommendationThe term investment recommendation shall be interpreted consistently with the interpretation of the term recommendation under section 240.15l–1 of title 17, Code of Federal Regulations..