Page 12 - Investment Advisor July/August 2023

Beginnings

WAsHINgTON WATCH

By Melanie Waddell

House Advances Bills to expand Accredited

Investor Definition

The full House also passed a bill requiring the sEC to devise an accredited
investor exam; other bills passed in June address social security identity theft.

in a recent letter that the various bills
to expand the definition of accredited
investor require additional language to
call on the SEC to study retail investor
complaints against RIAs generally.
“If the Congress is intent on expand-
ing access to private securities, it must
include some measure of oversight
to ensure the SEC is cognizant of the
serious issues faced by retail investors
at the hands of their trusted RIAs,”
Berkson said.
“The bills, if passed without such stric-
tures, will expose countless Boomers
who are retiring in record numbers and
susceptible to compelling sales pitches
he full House passed bills in early gle to secure funding — and providing to invest (and ultimately lose) their irre-
June to expand the definition of more Americans with additional invest- placeable 401(k) funds,” he explained.
Taccredited investor as well as to ment opportunities,” according to Hill.
create an accredited investor exam. The Micah Hauptman, director of investor CerTIFICATIon exAM
Accredited Investor Definition Review protection for the Consumer Federation On June 1, the full House passed The
Act, H.R. 1579, sponsored by Rep. Bill of America, said that “CFA strongly Equal Opportunity for All Investors Act
Huizenga, R-Mich., updates the list of opposes” French’s bill. “It would legisla- of 2023, introduced by Reps. Mike Flood,
certifications that an investor must sat- tively enshrine an approach to accredited R-Neb., and Wiley Nickel, D-N.C., which
isfy to qualify as an accredited investor. investors based on financial thresholds requires the Securities and Exchange
The Fair Investment Opportunities we know don’t work at identifying a popu- Commission to devise an accredited
for Professional Experts Act, H.R. 835, lation of investors that can fend for them- investor certification exam.
sponsored by Rep. French Hill, R-Ariz., selves without the protections afforded “H.R. 2797 provides a pathway for
expands the accredited investor defini- by the public markets,” Hauptman said. Americans to become accredited investors
tion, “thereby increasing the pool of Hugh Berkson, president of the Public by allowing individuals seeking status to
investors for small and emerging com- Investors Advocate Bar Association, or take an examination,” to be established by
panies in need of capital — especially PIABA, told House Financial Services the SEC and administered by the Financial Adobe Stock
minority entrepreneurs who often strug- Committee Chairman Patrick McHenry Industry Regulatory Authority, Flood said.

10 InvesTmenT ADvIsor July/August 2023 | thinkAdvisor.com