Fair Investment Opportunities for Professional Experts Act

This bill would expand the definition of an accredited investor to include individuals who demonstrate qualifying professional knowledge through specific educational or professional experience as determined by the Securities and Exchange Commission (SEC). It proposes to establish statutory authority for existing eligibility criteria, such as maintaining specific net worth or income levels and holding professional licenses as brokers or investment advisers. Additionally, the bill would direct the SEC to update federal regulations to ensure they align with these expanded eligibility standards for participating in private securities offerings.

This bill affects individuals with qualifying professional knowledge, education, or experience who seek to be classified as accredited investors for private securities offerings. It also impacts financial professionals, such as brokers and investment advisers, by providing statutory authority for their status as accredited investors based on licensure or registration. Additionally, the Securities and Exchange Commission is required to revise existing regulations to conform to these expanded eligibility criteria.

• Expansion of accredited investor eligibility. The bill broadens the definition of an accredited investor to include individuals who the Securities and Exchange Commission (SEC) determines possess qualifying professional knowledge through their education or work experience.
• Codification of existing investor criteria. The legislation provides statutory authority for current accredited investor standards, such as maintaining a broker or investment adviser license in good standing, as well as meeting specific annual salary and net worth thresholds.
• Requirement for SEC regulatory updates. The SEC is directed to revise the definition of an accredited investor within Regulation D to ensure federal regulations conform to the changes established by this bill.

The bill provides statutory authority for existing accredited investor criteria and directs the Securities and Exchange Commission to revise the definition of an accredited investor within Regulation D to include individuals with specific professional or educational expertise.

The bill aims to expand access to private securities offerings by broadening the definition of an accredited investor to include individuals with qualifying professional knowledge, education, or experience. It also seeks to codify existing financial and professional criteria for accredited investor status into federal law.