This act, if approved by the senate and the President, will direct the SEC to revise its previous regulations regarding the qualifications of natural persons as accredited investors. This act amends Section 2(a) (15) of the Securities Act by striking “; or” and inserting certain sections.
Under the act, an accredited investor will now include any individual:
- Whose net worth (or combined with their spouse’s) exceeds $1 million, not including their primary residence;
- Who has an annual income greater than $200,000 or $300,000 jointly;
- Who has a securities-related license issued by FINRA; or
- Who the SEC has deemed to have the necessary education or job experience.
If this bill is approved, the rules will be revised to consider a natural person to become an accredited investor, regardless of their respective income and net worth requirements. A person may become an accredited investor by having prior experience with financial institutions, or obtaining a license from FINRA upon completion of an exam.