House Passes Accredited Investor Bill

By Melanie Waddell

News March 08, 2024 at 02:12 PM

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The full House passed Friday the Expanding Access to Capital Act of 2023, a package of bills that includes a provision to expand the definition of "accredited investor" to include individuals receiving individualized investment advice or individualized investment recommendations with respect to a private offering from a qualified professional.

H.R. 2773, the bill to amend the accredited investor definition, was introduced by House Financial Services Committee Chairman Patrick McHenry, R. N.C.

The Expanding Access to Capital Act passed along party lines, by a vote of 212-205.

Also passed as part of the package was the Improving Disclosure for Investors Act, which was added as an amendment Thursday with a bipartisan vote.

The bill requires the Securities and Exchange Commission to write a rule allowing financial firms to deliver their documents in digital format.

Fidelity Investments said Friday in a statement that it applauded passage of the bill, "which takes the important step of modernizing investment disclosures by directing the SEC to make electronic delivery (eDelivery) the primary way for investors to receive information."

Fidelity said that it has "long believed, and data has shown, that eDelivery is a more secure, accessible, and less wasteful way to effectively communicate with investors of all ages."

The Boston-based firm added: "Critically, the legislation preserves investor choice and the ability to always receive paper if preferred. Fidelity will continue to work with Congressional leaders to enact this broadly bipartisan and bicameral legislation into law. "

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