,,ii  #aaeth ,,congress  #b;d ,session  
,s4 #bgef  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #be1    
#bjah,mr4 ,tillis 7for himself and ,ms4 
,cortez ,masto7 introduced the following
 bill2 which was read twice and referred
 to the ,committee on ,banking1         
,housing1 and ,urban ,affairs  ,a ,,bill
  ,to amend the ,securities ,act of     
#aicc to direct the ,securities and     
,exchange ,commission to revise the     
regulations of the ,commission regarding
 the qualifications of natural persons  
as accredited investors4  #a4 ,short    
title ,this ,act may be cited as the    
,fair ,investment ,opportunities for    
,professional ,experts ,act4  #b4       
,definition of accredited investor  7a7 
,in general ,section #b7;a7 of the      
,securities ,act of #aicc 7#ae ,u4,s4,c4
 #gg;b7a77 is amended by striking       
paragraph 7#ae7 and inserting the       
following3  7#ae7 7,a7 ,the term        
accredited investor shall mean-- 7i7 a  
bank1 as defined in section #c7;a77#b71 

whether acting in its individual or     
fiduciary capacity2 an insurance        
company1 as defined in paragraph 7#ac7  
of this subsection2 an investment       
company registered under the ,investment
 ,company ,act of #aidj 7#ae ,u4,s4,c4  
#hj;a-#a et seq47 or a business         
development company1 as defined in      
section #b7;a77#dh7 of that ,act 7#ae   
,u4,s4,c4 #hj;a-#b7;a77#dh772 a small   
business investment company licensed by 
the ,small ,business ,administration2 or
 an employee benefit plan1 including an 
individual retirement account1 which is 
subject to the provisions of the        
,employee ,retirement ,income ,security 
,act of #aigd 7#bi ,u4,s4,c4 #ajja et   
seq471 if the investment decision is    
made by a plan fiduciary1 as defined in 
section #c7ba7 of such ,act 7#bi        
,u4,s4,c4 #ajjb7ba771 which is either a 
bank1 an insurance company1 or a        
registered investment adviser2  7ii7 any
 natural person whose individual net    
worth1 or joint net worth with that     

person's spouse1 exceeds #a1jjj1jjj     
7which amount shall be adjusted for     
inflation by the ,commission every #c   
years to reflect the change in the      
,consumer ,price ,index for ,all ,urban 
,consumers published by the ,bureau of  
,labor ,statistics1 rounding to the     
nearest #aj1jjj7 where1 for purposes of 
calculating net worth under this        
clause--  7,i7 the person's primary     
residence shall not be included as an   
asset2  7,,ii7 indebtedness that is     
secured by the person's primary         
residence1 up to the estimated fair     
market value of the primary residence at
 the time of the sale of securities1    
shall not be included as a liability    
7except that if the amount of such      
indebtedness outstanding at the time of 
sale of securities exceeds the amount   
outstanding #fj days before such time1  
other than as a result of the           
acquisition of the primary residence1   
the amount of such excess shall be      
included as a liability72 and  7,,iii7  

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 the    
sale of securities shall be included as 
a liability2  7iii7 any natural person  
who had an individual income in excess  
of #bjj1jjj in each of the #b most      
recent years or joint income with that  
person's spouse in excess of #cjj1jjj in
 each of those years and has a          
reasonable expectation of reaching the  
same income level in the current year   
7which amounts shall be adjusted for    
inflation by the ,commission every #c   
years to reflect the change in the      
,consumer ,price ,index for ,all ,urban 
,consumers published by the ,bureau of  
,labor ,statistics1 rounding to the     
nearest #aj1jjj72  7iv7 any natural     
person who holds securities purchased   
from an issuer if such issuer has a     
reasonable belief that the natural      
person exceeded the threshold described 
in clause 7ii7 or 7iii7 at the time of  

the original purchase and would continue
 to exceed that threshold1 without      
regard to any subsequent adjustment for 
inflation2  7v7 any natural person who  
is currently licensed or registered as a
 broker1 dealer1 registered             
representative1 investment adviser1 or  
investment adviser representative by the
 ,commission1 the ,financial ,industry  
,regulatory ,authority1 or an equivalent
 self-regulatory organization1 as       
defined in section #c7;a7 of the        
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;c7a771 or the securities 
division of a ,state or the equivalent  
,state division responsible for         
licensing or registration of individuals
 in connection with securities          
activities2  7vi7 any natural person    
that the ,commission determines1 by     
regulation and in accordance with       
subparagraph 7,b71 to have demonstrable 
education1 job1 or professional         
experience to qualify such person as an 
accredited investor2 or  7vii7 any      

natural person who1 on the basis of such
 factors as financial sophistication1   
net worth1 knowledge1 and experience in 
financial matters1 or amount of assets  
under management qualifies as an        
accredited investor under rules and     
regulations which the ,commission shall 
prescribe4  7,b7 ,when issuing a        
regulation under subparagraph 7,a77vi71 
the ,commission shall-- 7i7 consider    
such factors as whether a natural person
 has--  7,i7 a qualifying education1    
job1 or professional experience1 as     
verified by the ,financial ,industry    
,regulatory ,authority or an equivalent 
self-regulatory organization1 as defined
 in section #c7;a7 of the ,securities   
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#gh;c7a771 or a certification or        
accreditation as verified by an         
independent third party2 and  7,,ii7 a  
reasonable level of relevant financial  
expertise in order to understand--  7aa7
 features of commonly issued private    
securities1 including any voting and    

economic rights and disclosure          
obligations of the issuer2  7bb7 the    
basic components of a financial         
statement2  7cc7 the material investment
 risk associated with the investment2   
and  7dd7 any other factor that the     
,commission determines will serve the   
public interest and protect investors2  
and  7ii7 determine the period of time  
during which an accredited investor     
shall retain such status4  4  7b7       
,regulations ,the ,securities and       
,exchange ,commission shall revise the  
definition of accredited investor under 
section #bcj4eja of title #ag1 ,code of 
,federal ,regulations1 to conform with  
the amendment made by subsection 7a74