,,ii  #aae? ,,congress  #b;d ,session   
,s4 #bgef  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #be1 #bjah,mr4  
,tillis 7= himself & ,ms4 ,cortez ,ma/o7
 introduc$ ! foll[+ bill2 :i* 0 read    
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,securities ,act (   
#aicc to direct ! ,securities & ,ex*ange
 ,commission to revise ! regulations ( !
 ,commission reg>d+ ! qualifications (  
natural p]sons z accr$it$ inve/ors4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,fair ,inve/m5t ,opportunities =        
,pr(essional ,exp]ts ,act4  #b4         
,def9ition ( accr$it$ inve/or  7a7 ,9   
g5]al ,section #b7;a7 ( ! ,securities   
,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77 is
 am5d$ by /rik+ p>agraph 7#ae7 & ins]t+ 
! foll[+3  7#ae7 7,a7 ,! t]m accr$it$   
inve/or %all mean-- 7i7 a bank1 z def9$ 
9 section #c7;a77#b71 :e!r act+ 9 its   
individual or fiduci>y capacity2 an     
insurance company1 z def9$ 9 p>agraph   
7#ac7 ( ?is subsection2 an inve/m5t     

company regi/]$ "u ! ,inve/m5t ,company 
,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et 
seq47 or a bus9ess developm5t company1 z
 def9$ 9 section #b7;a77#dh7 ( t ,act   
7#ae ,u4,s4,c4 #hj;a-#b7;a77#dh772 a    
small bus9ess inve/m5t company lic5s$ by
 ! ,small ,bus9ess ,adm9i/ration2 or an 
employee b5efit plan1 includ+ an        
individual retirem5t acc\nt1 :i* is     
subject to ! provisions ( ! ,employee   
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajja et seq471 if 
! inve/m5t decision is made by a plan   
fiduci>y1 z def9$ 9 section #c7ba7 ( su*
 ,act 7#bi ,u4,s4,c4 #ajjb7ba771 :i* is 
ei!r a bank1 an insurance company1 or a 
regi/]$ inve/m5t advis]2  7ii7 any      
natural p]son ^: individual net wor?1 or
 jo9t net wor? ) t p]son's sp\se1 exce$s
 #a1jjj1jjj 7:i* am\nt %all be adju/$ = 
inflation by ! ,commission e #c ye>s to 
reflect ! *ange 9 ! ,consum] ,price     
,index = ,all ,urban ,consum]s publi%$  
by ! ,bureau ( ,labor ,/ati/ics1 r\nd+  
to ! ne>e/ #aj1jjj7 :]e1 = purposes (   

calculat+ net wor? "u ?is clause--  7,i7
 ! p]son's prim>y resid5ce %all n be    
includ$ z an asset2  7,,ii7 indebt$ness 
t is secur$ by ! p]son's prim>y         
resid5ce1 up to ! e/imat$ fair m>ket    
value ( ! prim>y resid5ce at ! "t ( !   
sale ( securities1 %all n be includ$ z a
 liability 7except t if ! am\nt ( su*   
indebt$ness out/&+ at ! "t ( sale (     
securities exce$s ! am\nt out/&+ #fj    
days be=e su* "t1 o!r ?an z a result ( !
 acquisition ( ! prim>y resid5ce1 !     
am\nt ( su* excess %all be includ$ z a  
liability72 &  7,,iii7 indebt$ness t is 
secur$ by ! p]son's prim>y resid5ce 9   
excess ( ! e/imat$ fair m>ket value ( ! 
prim>y resid5ce at ! "t ( ! sale (      
securities %all be includ$ z a          
liability2  7iii7 any natural p]son :o  
_h an individual income 9 excess (      
#bjj1jjj 9 ea* ( ! #b mo/ rec5t ye>s or 
jo9t income ) t p]son's sp\se 9 excess (
 #cjj1jjj 9 ea* ( ^? ye>s & has a       
reasonable expectation ( rea*+ ! same   
income level 9 ! curr5t ye> 7:i* am\nts 

%all be adju/$ = inflation by !         
,commission e #c ye>s to reflect ! *ange
 9 ! ,consum] ,price ,index = ,all      
,urban ,consum]s publi%$ by ! ,bureau ( 
,labor ,/ati/ics1 r\nd+ to ! ne>e/      
#aj1jjj72  7iv7 any natural p]son :o    
holds securities pur*as$ f an issu] if  
su* issu] has a reasonable belief t !   
natural p]son exce$$ ! ?re%old describ$ 
9 clause 7ii7 or 7iii7 at ! "t ( !      
orig9al pur*ase & w\ld cont9ue to exce$ 
t ?re%old1 )\t reg>d to any subsequ5t   
adju/m5t = inflation2  7v7 any natural  
p]son :o is curr5tly lic5s$ or regi/]$ z
 a brok]1 deal]1 regi/]$ repres5tative1 
inve/m5t advis]1 or inve/m5t advis]     
repres5tative by ! ,commission1 !       
,f9ancial ,indu/ry ,regulatory          
,au?ority1 or an equival5t              
self-regulatory organization1 z def9$ 9 
section #c7;a7 ( ! ,securities ,ex*ange 
,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a771  
or ! securities division ( a ,/ate or ! 
equival5t ,/ate division responsible =  
lic5s+ or regi/ration ( individuals 9   

connection ) securities activities2     
7vi7 any natural p]son t ! ,commission  
det]m9es1 by regulation & 9 accordance )
 subp>agraph 7,b71 to h demon/rable     
education1 job1 or pr(essional exp]i5ce 
to qualify su* p]son z an accr$it$      
inve/or2 or  7vii7 any natural p]son :o1
 on ! basis ( su* factors z f9ancial    
sophi/ication1 net wor?1 k1 & exp]i5ce 9
 f9ancial matt]s1 or am\nt ( assets "u  
managem5t qualifies z an accr$it$       
inve/or "u rules & regulations :i* !    
,commission %all prescribe4  7,b7 ,:5   
issu+ a regulation "u subp>agraph       
7,a77vi71 ! ,commission %all-- 7i7      
consid] su* factors z :e!r a natural    
p]son has--  7,i7 a qualify+ education1 
job1 or pr(essional exp]i5ce1 z v]ifi$  
by ! ,f9ancial ,indu/ry ,regulatory     
,au?ority or an equival5t               
self-regulatory organization1 z def9$ 9 
section #c7;a7 ( ! ,securities ,ex*ange 
,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a771  
or a c]tification or accr$itation z     
v]ifi$ by an indep5d5t ?ird p>ty2 &     

7,,ii7 a reasonable level ( relevant    
f9ancial exp]tise 9 ord] to und]/&--    
7aa7 features ( commonly issu$ private  
securities1 includ+ any vot+ & economic 
rights & disclosure obligations ( !     
issu]2  7bb7 ! basic compon5ts ( a      
f9ancial /atem5t2  7cc7 ! mat]ial       
inve/m5t risk associat$ ) ! inve/m5t2 & 
7dd7 any o!r factor t ! ,commission     
det]m9es w s]ve ! public int]e/ &       
protect inve/ors2 &  7ii7 det]m9e !     
p]iod ( "t dur+ :i* an accr$it$ inve/or 
%all reta9 su* /atus4  4  7b7           
,regulations ,! ,securities & ,ex*ange  
,commission %all revise ! def9ition (   
accr$it$ inve/or "u section #bcj4eja (  
title #ag1 ,code ( ,f$]al ,regulations1 
to con=m ) ! am5dm5t made by subsection 
7a74