House Passes Bill to Require Accredited Investor Exam
Under the bill, the SEC would devise the exam and FINRA would administer it.
The full House passed legislation on Wednesday requiring the Securities and Exchange Commission to devise an accredited investor certification exam.
The bill, The Equal Opportunity for All Investors Act of 2023, introduced by Reps. Mike Flood, R-Neb., and Wiley Nickel, D-N.C., was introduced in April.
“H.R. 2797 provides a pathway for Americans to become accredited investors by allowing individuals seeking status to take an examination,” to be established by the SEC and administered by the Financial Industry Regulatory Authority, Flood said.
“It is my firm belief that the accredited investor definition should not be tied exclusively to wealth,” Flood said in a statement after the bill’s passage. “Instead, we should unlock opportunities for knowledgeable investors that may not come from means.”
Rep. Ann Wagner, R-Mo., chairwoman of the House Financial Services Subcommittee on Capital Markets, said on the House floor that under H.R. 2797, “if you can demonstrate competency with these types of investments through an exam, then you qualify as an ‘accredited investor’ … by expanding the pathways to qualify as an ‘accredited investor’ beyond wealth tests, this bill modernizes the outdated definition that has inappropriately sidelined sophisticated-but-not-wealthy individuals from high-growth asset classes historically reserved for the wealthiest individuals.”
The full House also plans to vote this week on the Accredited Investor Definition Review Act, H.R. 1579, which would broaden the accredited investor definition to include those holding certain designations, certifications and credentials.
The bill was introduced by Rep. Bill Huizenga, R-Mich., and passed the House Financial Services Committee with a 41-2 vote on April 26.