House Approves Several Bills Expanding Investment Opportunities

Posted on June 6th, 2023 at 10:52 AM
House Approves Several Bills Expanding Investment Opportunities

From the Desk of Jim Eccleston at Eccleston Law.

The full House has passed the Equal Opportunity for All Investors Act of 2023, which among other things would require the Securities and Exchange Commission (SEC) to devise a test for investors to be certified as accredited investors.

Currently, the accredited investor definition imposes wealth threshold requirements to determine who qualifies as an accredited investor. Those thresholds have served as a means of safeguarding investors by ensuring that only individuals or entities with sufficient financial resources and knowledge can participate in certain investment opportunities.

The SEC defines an accredited investor as an individual with a net worth of at least $1 million (excluding their primary residence) or an annual income of $200,000 ($300,000 for married couples) for the past two years with a reasonable expectation of reaching the same income level in the current year. According to ThinkAdvisor, the exam will be established by the SEC and administered by the Financial Industry Regulatory Authority (FINRA).

Just yesterday, the full House passed two more accredited investor-related bills. The Accredited Investor Definition Review Act updates the list of certifications that an investor must satisfy to qualify as an accredited investor. Additionally, the Fair Investment Opportunities for Professional Experts Act, sponsored by Rep. French Hill, R-Ariz., expands the accredited investor definition, “thereby increasing the pool of investors for small and emerging companies in need of capital — especially minority entrepreneurs who often struggle to secure funding — and providing more Americans with additional investment opportunities”, according to Hill.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: House, Securities and Exchange Commission, SEC, FINRA

Return to Archive

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

January 23, 2025
Barred Advisor Continues Pattern of Settlements at Western International Securities

Chris Kennedy, a barred advisor formerly associated with Western International Securities, has agreed to a $2.1 million settlement with the Securities and Exchange Commission (SEC) over allegations of high-volume trading, or churning, in client accounts.

January 22, 2025
FINRA to Revise Outside Business Activities Rules

The Financial Industry Regulatory Authority (FINRA) is seeking to overhaul its rules on outside business activities (OBA) and private securities transactions.

January 21, 2025
FINRA Orders $8.2 Million in Customer Restitution Over Mutual Fund Fee Errors

FINRA has required Edward Jones, Osaic Wealth, and Cambridge Investment Research to reimburse customers a combined total of more than $8.2 million for improperly charged mutual fund sales fees.