H.R. 1579 would expand the definition of an accredited investor under the Securities Act of 1933 to include individuals with certifications, designations, or credentials that the Securities and Exchange Commission (SEC) determines are in the public interest. The bill would require the SEC to establish and review a list of accepted certifications, designations, and credentials once every five years and make amendments when necessary. Under current law, accredited investors are defined as people or entities with sufficient financial sophistication and resources to sustain the risk of loss, including banks, broker-dealers, and investment companies. Accredited investors may participate in investment opportunities not available to nonaccredited investors, such as purchasing securities that are exempt from registration with the SEC.
