Fair Investment Opportunities for Professional Experts Act in plain language
1: Short title
This section would let the Act be called the "Fair Investment Opportunities for Professional Experts Act."
Show official text
1. Short title This Act may be cited as the Fair Investment Opportunities for Professional Experts Act .
2: Definition of accredited investor
This section would amend the definition of "accredited investor" in the Securities Act of 1933. It would keep the existing categories of accredited investor as they are now, just moving them to new letter labels within the list. It would then add four new categories of individuals (natural persons) who would count as accredited investors. First, a person whose individual net worth, or joint net worth with a spouse or spousal equivalent, is more than $1,000,000 at the time of a proposed sale of a security would qualify. When figuring net worth for this test, the person's primary residence would not count as an asset. Debt secured by the primary residence, up to the residence's estimated fair market value at the time of the sale, would not count as a liability, except that if that debt grew in the 60 days before the sale for a reason other than buying the residence, the amount it grew would count as a liability. Debt secured by the primary residence that is more than the residence's estimated fair market value would count as a liability. The $1,000,000 threshold, along with the income thresholds described below, would be adjusted for inflation by the Securities and Exchange Commission every 5 years, rounded to the nearest $10,000, based on changes in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics. Second, a person with individual income of more than $200,000 in each of the 2 most recent years, or joint income with a spouse or spousal equivalent of more than $300,000 in each of those years, would qualify if the person also has a reasonable expectation of reaching the same income level in the current year. Third, a person who currently holds a license or registration as a broker or investment adviser from the Commission, a self-regulatory organization, or the securities division of a state, the District of Columbia, or a territory of the United States (or the equivalent licensing or registration body), and who is in good standing with that license or registration, would qualify. Fourth, a person the Commission determines by regulation to have demonstrable education or job experience showing professional knowledge of a subject related to a particular investment would qualify, but only if a self-regulatory organization verifies that education or job experience. Within 180 days after this Act becomes law, the Commission would have to revise the definition of accredited investor under Regulation D to match these changes.
Show official text
2. Definition of accredited investor (a) In general Section 2(a)(15) of the Securities Act of 1933 ( 15 U.S.C. 77b(a)(15) ) is amended— (1) by redesignating subparagraphs (i) and (ii) as subparagraphs (A) and (F), respectively; and (2) in subparagraph (A) (as so redesignated), by striking ; or and inserting a semicolon, and inserting after such subparagraph the following: (B) with respect to a proposed sale of a security, any natural person whose individual net worth, or joint net worth with that person’s spouse or spousal equivalent, at the time of such sale, exceeds $1,000,000 (which amount, along with the amounts set forth in subparagraph (C), shall be adjusted for inflation by the Commission every 5 years to the nearest $10,000 to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics) where, for purposes of calculating net worth under this subparagraph— (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of such sale, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of such sale exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence at the time of such sale shall be included as a liability; (C) any natural person who had an individual income in excess of $200,000 in each of the 2 most recent years or joint income with that person’s spouse or spousal equivalent in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; (D) any natural person who is— (i) currently licensed or registered as a broker or investment adviser by the Commission, a self-regulatory organization (as defined in section 3(a) of the Securities Exchange Act of 1934), or the securities division of a State, the District of Columbia, or a territory of the United States or the equivalent division responsible for licensing or registration of individuals in connection with securities activities; and (ii) in good standing with respect to such licence or registration; (E) any natural person the Commission determines, by regulation, to have demonstrable education or job experience to qualify such person as having professional knowledge of a subject related to a particular investment, and whose education or job experience is verified by a self-regulatory organization (as defined in section 3(a) of the Securities Exchange Act of 1934); or . (b) Rulemaking Not later than 180 days after the date of enactment of this Act, the Securities and Exchange Commission shall revise the definition of accredited investor under Regulation D (17 CFR 230.500 et seq.) to conform with the amendments made by subsection (a). Passed the House of Representatives June 23, 2025. Kevin F. McCumber, Clerk.