Originally introduced this past Spring, Representative David Schweikert saw the “Fair Investment Opportunities for Professional Experts Act” (HR 2187 — 114th Congress) take another step forward on December 9th. The House Financial Services Committee saw it approved by a vote of 54 yeas to just 2 nays. The official title of the Bill, as introduced, is “To direct the Securities and Exchange Commission to revise its regulations regarding the qualifications of natural persons as accredited investors”. The language of the Bill (embedded below) compels the SEC to act 180 days after enactment to allow greater access to private placement offers. It also mandates that FINRA craft a licensing program in which individuals may demonstrate a sufficient understanding of the risk and machinations of investing in private companies.
As reported yesterday, the Commission is already considering recommendations from SEC staff to modernize the definition of an accredited investor. Perhaps both the SEC and Congress are aligning on this issue. Time will tell.
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