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 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 as the Commission determines necessary or appropriate in the public interest or for the protection of investors, where—
“(i) such list of certifications, designations, or credentials shall include those professional certifications described in the Commission order titled “Order Designating Certain Professional Licenses as Qualifying Natural Persons for Accredited Investor Status” (85 Fed. Reg. 64234; published October 9, 2020); and
“(ii) in establishing which attributes should be considered for purposes of determining such certifications, designations, or credentials, the Commission shall consider attributes that are no less broad than those attributes described in the amendments made to section 230.501(a)(10) of title 17, Code of Federal Regulations, by the final rule of the Commission titled “Accredited Investor Definition” (85 Fed. Reg. 64234; published 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 the 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 designated as qualifying natural persons for accredited investor status pursuant to Rule 501(a)(10) (17 CFR 230.501(a)(10));
“(B) add such certifications, designations, and credentials to such list 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 such list at the time of such review; and
“(C) adjust or modify such list as the Commission determines necessary or appropriate in the public interest or for the protection of investors.”