On 1 February 2016, the House of Representatives passed HR 2187 “Fair Investment Opportunities for Professional Experts Act,” which, if signed into law, would expand the definition of “accredited investor” under the US securities laws. The bill would amend Section 2(a)(15) of the Securities Act of 1933 (the “Securities Act”) to include within the definition of “accredited investor”: (i) persons in the securities industry licensed by the SEC or the Financial Industry Regulatory Authority (“FINRA”) (such as a registered broker or investment adviser), or persons licensed with the securities division of a state or an equivalent state division; and (ii) persons whom the SEC determines by regulation to have demonstrable education or job experience to qualify such persons as having professional knowledge of a subject related to a particular investment, and whose education or job experience is verified by FINRA or an equivalent selfregulatory authority.

The bill also seeks to codify in the definition of “accredited investor” in Section 2(a)(15) of the Securities Act the income and net worth thresholds currently specified in Regulation D and directs the SEC to adjust those financial thresholds for inflation every five years.

The bill would need to be passed by the Senate and signed into law by the President before taking effect.