H.R. 3394: Fair Investment Opportunities for Professional Experts Act
The bill titled "Fair Investment Opportunities for Professional Experts Act" aims to amend the Securities Act of 1933 by changing the definition of "accredited investor." Here are the main points of the bill:
Changes to the Definition of Accredited Investor
The bill proposes the following significant changes regarding who qualifies as an accredited investor:
- Net Worth Criteria: It specifies that an individual can qualify as an accredited investor if their individual net worth, or the joint net worth with their spouse, exceeds $1,000,000. Importantly, this calculation will not include the value of the individual's primary residence as an asset. Additionally, mortgages related to the primary residence will only be considered up to the property’s fair market value.
- Income Criteria: Individuals would also qualify if they had an individual income exceeding $200,000 in each of the last two years, or a joint income with their spouse that exceeded $300,000 during those same years, provided they have a reasonable expectation of continuing to earn those income levels in the current year.
- Professional Designation: The bill defines accredited investors as individuals who are currently licensed or registered as a broker or investment adviser. This requirement would ensure they are in good standing with the relevant oversight bodies.
- Professional Knowledge Criteria: It introduces a new category for individuals who can demonstrate substantial education or job experience in relation to investments, as determined by the Securities and Exchange Commission (SEC). This requirement aims to verify their qualifications through a self-regulatory organization.
Regulatory Updates
After the bill is enacted, it requires the Securities and Exchange Commission to revise the relevant regulations regarding accredited investors within 180 days. This will ensure that the new definitions align with the changes outlined in the bill.
Purpose of the Changes
The adjustments to the definition of accredited investors are intended to broaden investment opportunities for individuals with proven professional experience or educational qualifications related to investments, rather than solely relying on wealth or income metrics.
Impact on Investment Opportunities
By expanding the criteria for accredited investors, the legislation aims to allow a greater number of individuals the ability to participate in investment opportunities that were previously accessible primarily to high-net-worth individuals. This could potentially lead to an increase in participation from professionals within various industries who have valuable insight or expertise in certain investments.
Relevant Companies
None found.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
4 bill sponsors
Actions
15 actions
| Date | Action |
|---|---|
| Jun. 24, 2025 | Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. |
| Jun. 23, 2025 | At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed. |
| Jun. 23, 2025 | Considered as unfinished business. (consideration: CR H2878-2879) |
| Jun. 23, 2025 | Considered under suspension of the rules. (consideration: CR H2869-2871) |
| Jun. 23, 2025 | DEBATE - The House proceeded with forty minutes of debate on H.R. 3394. |
| Jun. 23, 2025 | Motion to reconsider laid on the table Agreed to without objection. |
| Jun. 23, 2025 | Mrs. Wagner moved to suspend the rules and pass the bill, as amended. |
| Jun. 23, 2025 | On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 397 - 12 (Roll no. 173). (text: CR H2869-2870) |
| Jun. 23, 2025 | Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 397 - 12 (Roll no. 173). (text: CR H2869-2870) |
| Jun. 03, 2025 | Placed on the Union Calendar, Calendar No. 85. |
| Jun. 03, 2025 | Reported (Amended) by the Committee on Financial Services. H. Rept. 119-115. |
| May. 20, 2025 | Committee Consideration and Mark-up Session Held |
| May. 20, 2025 | Ordered to be Reported (Amended) by the Yeas and Nays: 45 - 1. |
| May. 14, 2025 | Introduced in House |
| May. 14, 2025 | Referred to the House Committee on Financial Services. |
Corporate Lobbying
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