H.R. 1579 – Reading Mode

IIB

118th CONGRESS

1st Session

H. R. 1579

IN THE SENATE OF THE UNITED STATES

June 6, 2023

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

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.

Short title

This Act may be cited as the Accredited Investor Definition Review Act.

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—

(1)

by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively;

(2)

in subparagraph (A), as so redesignated, by striking adviser; or and inserting adviser;;

(3)

in subparagraph (B), as so redesignated, by striking the period at the end and inserting ; or; and

(4)

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 such list of certifications, designations, or credentials shall be no 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 titled Accredited Investor Definition (85 Fed. Reg. 64234; published October 9, 2020).

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 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 rules issued pursuant to such section;

(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.

Passed the House of Representatives June 5, 2023.

Cheryl L. Johnson,

Clerk.