Section 1 Short title
This Act may be cited as the “Accredited Investor Definition Review Act”.
Accredited Investor Definition Review Act
A BILL
To amend the Securities Act of 1933 and the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to the definition of the term accredited investor, and for other purposes.
Sec. 2 Certifications, designations, and credentials under the definition of accredited investor
Section 2(a)(15) of the Securities Act of 1933 (15 U.S.C. 77b(a)(15)) is amended—
by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively;
in subparagraph (A), as so redesignated, by striking “adviser; or” and inserting “adviser;”;
in subparagraph (B), as so redesignated, by striking the period at the end and inserting “; or”; and
by adding at the end the following:
“(C) an individual holding such certifications, designations, or credentials—
“(i) as the Commission determines necessary or appropriate in the public interest or for the protection of investors; and
“(ii) that are not less broad than those certifications, designations, or credentials described in the amendments made to section 230.501 of title 17, Code of Federal Regulations, by the final rule of the Commission entitled “Accredited Investor Definition” (85 Fed. Reg. 64234 (October 9, 2020)).”
Sec. 3 Periodic review of certifications, designations, and credentials
Section 413(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (15 U.S.C. 77b note) is amended by adding at the end the following:
“(3) Periodic review of certifications, designations, and credentials—Not later than 18 months after the date of enactment of this paragraph and not less frequently than once every 5 years thereafter, the Commission shall—
“(A) review the list of certifications, designations, and credentials accepted with respect to meeting the requirements of the definition of “accredited investor” under section 2(a)(15) of the Securities Act of 1933 (15 U.S.C. 77b(a)(15)) and the rules issued under such section 2(a)(15);
“(B) add such certifications, designations, and credentials to the list described in subparagraph (A) as the Commission determines are substantially similar in measuring the financial sophistication, knowledge, and experience in financial matters of an individual to the certifications, designations, and credentials included on that list at the time of that review; and
“(C) adjust or modify that list as the Commission determines necessary or appropriate in the public interest or for the protection of investors.”