| 1 | 1 | | I |
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| 2 | 2 | | 118THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 2773 |
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| 5 | 5 | | To amend the definition of an accredited investor to include individuals |
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| 6 | 6 | | receiving advice from certain professionals, and for other purposes. |
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| 7 | 7 | | IN THE HOUSE OF REPRESENTATIVES |
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| 8 | 8 | | APRIL20, 2023 |
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| 9 | 9 | | Mr. M |
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| 10 | 10 | | CHENRYintroduced the following bill; which was referred to the |
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| 11 | 11 | | Committee on Financial Services |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To amend the definition of an accredited investor to include |
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| 14 | 14 | | individuals receiving advice from certain professionals, |
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| 15 | 15 | | and for other purposes. |
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| 16 | 16 | | Be it enacted by the Senate and House of Representa-1 |
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| 17 | 17 | | tives of the United States of America in Congress assembled, 2 |
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| 18 | 18 | | SECTION 1. ACCREDITED INVESTORS INCLUDE INDIVID-3 |
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| 19 | 19 | | UALS RECEIVING ADVICE FROM CERTAIN 4 |
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| 20 | 20 | | PROFESSIONALS. 5 |
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| 21 | 21 | | (a) S |
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| 22 | 22 | | ECURITIESACT OF1933.—Section 2(a)(15) of 6 |
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| 23 | 23 | | the Securities Act of 1933 (15 U.S.C. 77b(a)(15)) is 7 |
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| 24 | 24 | | amended— 8 |
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| 25 | 25 | | (1) by striking ‘‘(15) The term ‘accredited in-9 |
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| 26 | 26 | | vestor’ shall mean—’’ and inserting the following: 10 |
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| 27 | 27 | | VerDate Sep 11 2014 22:14 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2773.IH H2773 |
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| 28 | 28 | | kjohnson on DSK79L0C42PROD with BILLS 2 |
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| 29 | 29 | | •HR 2773 IH |
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| 30 | 30 | | ‘‘(15) ACCREDITED INVESTOR.— 1 |
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| 31 | 31 | | ‘‘(A) I |
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| 32 | 32 | | N GENERAL.—The term ‘accredited 2 |
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| 33 | 33 | | investor’ means—’’; 3 |
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| 34 | 34 | | (2) in clause (i), by striking ‘‘or’’ at the end; 4 |
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| 35 | 35 | | (3) in clause (ii), by striking the period at the 5 |
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| 36 | 36 | | end and inserting ‘‘; or’’; 6 |
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| 37 | 37 | | (4) by adjusting the indentation of clauses (i) 7 |
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| 38 | 38 | | and (ii) by moving such clauses 2 ems to the right; 8 |
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| 39 | 39 | | and 9 |
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| 40 | 40 | | (5) by adding at the end the following: 10 |
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| 41 | 41 | | ‘‘(iii) any individual receiving individ-11 |
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| 42 | 42 | | ualized investment advice or individualized 12 |
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| 43 | 43 | | investment recommendations with respect 13 |
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| 44 | 44 | | to the applicable transaction from an indi-14 |
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| 45 | 45 | | vidual described under section 15 |
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| 46 | 46 | | 203.501(a)(10) of title 17, Code of Federal 16 |
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| 47 | 47 | | Regulations. 17 |
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| 48 | 48 | | ‘‘(B) D |
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| 49 | 49 | | EFINITIONS.—In subparagraph 18 |
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| 50 | 50 | | (A)(iii): 19 |
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| 51 | 51 | | ‘‘(i) I |
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| 52 | 52 | | NVESTMENT ADVICE .—The term 20 |
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| 53 | 53 | | ‘investment advice’ shall be interpreted 21 |
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| 54 | 54 | | consistently with the interpretation of the 22 |
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| 55 | 55 | | phrase ‘engages in the business of advising 23 |
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| 56 | 56 | | others, either directly or through publica-24 |
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| 57 | 57 | | tions or writings, as to the value of securi-25 |
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| 58 | 58 | | VerDate Sep 11 2014 22:14 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2773.IH H2773 |
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| 59 | 59 | | kjohnson on DSK79L0C42PROD with BILLS 3 |
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| 60 | 60 | | •HR 2773 IH |
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| 61 | 61 | | ties or as to the advisability of investing in, 1 |
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| 62 | 62 | | purchasing, or selling securities’ under sec-2 |
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| 63 | 63 | | tion 202(a)(11) of the Investment Advisers 3 |
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| 64 | 64 | | Act of 1940 (15 U.S.C. 80b–2(a)(11)). 4 |
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| 65 | 65 | | ‘‘(ii) I |
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| 66 | 66 | | NVESTMENT RECOMMENDA -5 |
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| 67 | 67 | | TION.—The term ‘investment recommenda-6 |
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| 68 | 68 | | tion’ shall be interpreted consistently with 7 |
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| 69 | 69 | | the interpretation of the term ‘rec-8 |
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| 70 | 70 | | ommendation’ under section 240.15l–1 of 9 |
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| 71 | 71 | | title 17, Code of Federal Regulations.’’. 10 |
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| 72 | 72 | | (b) C |
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| 73 | 73 | | ONFORMINGCHANGES TOREGULATIONS.—The 11 |
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| 74 | 74 | | Securities and Exchange Commission shall revise section 12 |
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| 75 | 75 | | 203.501(a) of title 17, Code of Federal Regulations, and 13 |
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| 76 | 76 | | any other definition of ‘‘accredited investor’’ in a rule of 14 |
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| 77 | 77 | | the Commission in the same manner as such definition 15 |
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| 78 | 78 | | is revised under subsection (a). 16 |
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| 79 | 79 | | Æ |
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| 80 | 80 | | VerDate Sep 11 2014 22:14 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2773.IH H2773 |
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| 81 | 81 | | kjohnson on DSK79L0C42PROD with BILLS |
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