[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2773 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 2773

     To amend the definition of an accredited investor to include 
individuals receiving advice from certain professionals, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 20, 2023

 Mr. McHenry introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
     To amend the definition of an accredited investor to include 
individuals receiving advice from certain professionals, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ACCREDITED INVESTORS INCLUDE INDIVIDUALS RECEIVING ADVICE 
              FROM CERTAIN PROFESSIONALS.

    (a) Securities Act of 1933.--Section 2(a)(15) of the Securities Act 
of 1933 (15 U.S.C. 77b(a)(15)) is amended--
            (1) by striking ``(15) The term `accredited investor' shall 
        mean--'' and inserting the following:
            ``(15) Accredited investor.--
                    ``(A) In general.--The term `accredited investor' 
                means--'';
            (2) in clause (i), by striking ``or'' at the end;
            (3) in clause (ii), by striking the period at the end and 
        inserting ``; or'';
            (4) by adjusting the indentation of clauses (i) and (ii) by 
        moving such clauses 2 ems to the right; and
            (5) by adding at the end the following:
                            ``(iii) any individual receiving 
                        individualized investment advice or 
                        individualized investment recommendations with 
                        respect to the applicable transaction from an 
                        individual described under section 
                        203.501(a)(10) of title 17, Code of Federal 
                        Regulations.
                    ``(B) Definitions.--In subparagraph (A)(iii):
                            ``(i) Investment advice.--The term 
                        `investment advice' shall be interpreted 
                        consistently with the interpretation of the 
                        phrase `engages in the business of advising 
                        others, either directly or through publications 
                        or writings, as to the value of securities or 
                        as to the advisability of investing in, 
                        purchasing, or selling securities' under 
                        section 202(a)(11) of the Investment Advisers 
                        Act of 1940 (15 U.S.C. 80b-2(a)(11)).
                            ``(ii) Investment recommendation.--The term 
                        `investment recommendation' shall be 
                        interpreted consistently with the 
                        interpretation of the term `recommendation' 
                        under section 240.15l-1 of title 17, Code of 
                        Federal Regulations.''.
    (b) Conforming Changes to Regulations.--The Securities and Exchange 
Commission shall revise section 203.501(a) of title 17, Code of Federal 
Regulations, and any other definition of ``accredited investor'' in a 
rule of the Commission in the same manner as such definition is revised 
under subsection (a).
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