[House Report 118-92]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 118-92
======================================================================
ACCREDITED INVESTOR DEFINITION REVIEW ACT
_______
June 5, 2023.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. McHenry, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 1579]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 1579) to amend the Securities Act of 1933 and
the Dodd-Frank Wall Street Reform and Consumer Protection Act
with respect to the definition of accredited investor, and for
other purposes, having considered the same, reports favorably
thereon with an amendment and recommends that the bill as
amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Accredited Investor Definition Review
Act''.
SEC. 2. CERTIFICATIONS, DESIGNATIONS, AND CREDENTIALS UNDER THE
DEFINITION OF ACCREDITED INVESTOR.
Section 2(a)(15) of the Securities Act of 1933 (15 U.S.C. 77b(a)(15))
is amended--
(1) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively;
(2) in subparagraph (A), as so redesignated, by striking
``adviser; or'' and inserting ``adviser;'';
(3) in subparagraph (B), as so redesignated, by striking the
period at the end and inserting ``; or''; and
(4) by adding at the end the following:
``(C) an individual holding such certifications,
designations, or credentials as the Commission
determines necessary or appropriate in the public
interest or for the protection of investors, where such
list of certifications, designations, or credentials
shall be no less broad than those certifications,
designations, or credentials described in the
amendments made to section 230.501 of title 17, Code of
Federal Regulations, by the final rule of the
Commission titled `Accredited Investor Definition' (85
Fed. Reg. 64234; published October 9, 2020).''.
SEC. 3. PERIODIC REVIEW OF CERTIFICATIONS, DESIGNATIONS, AND
CREDENTIALS.
Section 413(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (15 U.S.C. 77b note) is amended by adding at the end the
following:
``(3) Periodic review of certifications, designations, and
credentials.--Not later than 18 months after the date of the
enactment of this paragraph and not less frequently than once
every 5 years thereafter, the Commission shall--
``(A) review the list of certifications,
designations, and credentials accepted with respect to
meeting the requirements of the definition of
`accredited investor' under section 2(a)(15) of the
Securities Act of 1933 (15 U.S.C. 77b(a)(15)) and rules
issued pursuant to such section;
``(B) add such certifications, designations, and
credentials to such list as the Commission determines
are substantially similar in measuring the financial
sophistication, knowledge, and experience in financial
matters of an individual to the certifications,
designations, and credentials included on such list at
the time of such review; and
``(C) adjust or modify such list as the Commission
determines necessary or appropriate in the public
interest or for the protection of investors.''.
Purpose and Summary
Introduced on March 14, 2023, by Representative Bill
Huizenga, H.R. 1579, the Accredited Investor Definition Review
Act, would require the SEC to review the list of
certifications, designations, and credentials for individuals
to qualify as an accredited investor and add additional
certifications, designations, and credentials that the SEC
determines are substantially similar. This bill would require
the SEC to repeat this process every five years after the
initial assessment.
Background and Need for Legislation
To qualify as an accredited investor, an individual must
have an annual income of at least $200,000 (or $300,000 with a
spouse) for each of the previous two years or a net worth of
over $1 million (either alone or with a spouse). In August
2020, the Securities and Exchange Commission (SEC) adopted
amendments to expand the accredited investor definition to
include individuals with certain professional certifications or
credentials from accredited educational institutions. By
requiring the SEC to regularly review the list of
certifications, designations, and credentials for qualifying as
an accredited investor--and add additional qualifying
pathways--H.R. 1579 will empower those sophisticated-but-not-
wealthy investors to qualify as accredited investors. This bill
will ensure that investments in high-growth private companies
are not reserved for only the elite, wealthy investors who
currently make up most accredited investors.
Hearing
The Subcommittee on Capital Markets of the Committee on
Financial Services held a hearing examining matters relating to
H.R. 1579 on February 8, 2023.
Committee Consideration
The Committee on Financial Services met in open session on
April 26, 2023, and ordered H.R. 1579 to be reported favorably
to the House as amended by a recorded vote of 41 ayes to 2 nays
(Record vote no. FC-35), a quorum being present. Before the
question was called to order the bill favorably reported, the
Committee adopted an amendment in the nature of a substitute
offered by Mr. Huizenga by voice vote.
Committee Votes
Clause 2(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the order to report legislation and amendments thereto. H.R.
1579 was ordered reported favorably to the House as amended by
a recorded vote of 41 ayes to 2 nays (Record vote no. FC-35), a
quorum being present.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 1579 is empower
sophisticated-but-not-wealthy investors to qualify as
accredited investors by requiring the SEC to review the list of
certifications, designations, and credentials for individuals
to qualify as an accredited investor and add additional
certifications, designations, and credentials that the SEC
determines are substantially similar.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1973.
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
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.
Using information about the cost of similar provisions, CBO
estimates that implementing H.R. 1579 would cost less than
$500,000. Because the SEC is authorized to collect fees each
year to offset its annual appropriation, CBO expects that the
net effect on discretionary spending over the 2023-2028 period
would be negligible, assuming appropriation actions consistent
with that authority.
If the SEC increases fees to offset the costs associated
with implementing the bill, H.R. 1579 would increase the cost
of an existing mandate on private entities required to pay
those assessments. CBO estimates that the incremental cost of
that mandate would be small and fall below the annual threshold
established in the Unfunded Mandates Reform Act (UMRA) for
private-sector mandates ($198 million in 2023, adjusted
annually for inflation).
H.R. 1579 contains no intergovernmental mandates as defined
in UMRA.
The CBO staff contacts for this estimate are David Hughes
(for federal costs) and Rachel Austin (for mandates). The
estimate was reviewed by Theresa Gullo, Director of Budget
Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Federal Mandates Statement
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995.
Per the estimate from CBO, H.R. 1579 could increase the
cost of an existing mandate on private entities if the SEC
increased costs to implement the bill. However, this increase
would still fall below the annual threshold for private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The Committee has determined that the bill does not impose
a Federal intergovernmental mandate on State, local, or tribal
governments.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section cites H.R. 1579 as the ``Accredited Investor
Definition Review Act''.
Section 2. Definition of accredited investor
This section amends the definition of an accredited
investor to include individuals that have certifications,
designations, or credentials as the SEC determines necessary or
appropriate.
Section 3. Periodic review of certifications, designations, and
credentials
This section amends the Dodd-Frank Act to require the SEC
to review the list of certifications, designations, and
credentials to qualify as an accredited investor within 18
months and every five years thereafter. This section also
directs the SEC to add such certificates, designations, and
credentials to the list that the SEC determines are
substantially similar to the ones included on the list at the
time of review and to adjust the list if the SEC deems it
necessary in the public interest or for the protection of
investors.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown below, as prepared by the
Office of Legislative Counsel.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
SECURITIES ACT OF 1933
TITLE I--
* * * * * * *
definitions
Sec. 2. (a) Definitions.--When used in this title, unless the
context otherwise requires--
(1) The term ``security'' means any note, stock,
treasury stock, security future, security-based swap,
bond, debenture, evidence of indebtedness, certificate
of interest or participation in any profit-sharing
agreement, collateral-trust certificate,
preorganization certificate or subscription,
transferable share, investment contract, voting-trust
certificate, certificate of deposit for a security,
fractional undivided interest in oil, gas, or other
mineral rights, any put, call, straddle, option, or
privilege on any security, certificate of deposit, or
group or index of securities (including any interest
therein or based on the value thereof), or any put,
call, straddle, option, or privilege entered into on a
national securities exchange relating to foreign
currency, or, in general, any interest or instrument
commonly known as a ``security'', or any certificate of
interest or participation in, temporary or interim
certificate for, receipt for, guarantee of, or warrant
or right to subscribe to or purchase, any of the
foregoing.
(2) The term ``person'' means an individual, a
corporation, a partnership, an association, a joint-
stock company, a trust, any unincorporated
organization, or a government or political subdivision
thereof. As used in this paragraph the term ``trust''
shall include only a trust where the interest or
interests of the beneficiary or beneficiaries are
evidenced by a security.
(3) The term ``sale'' or ``sell'' shall include every
contract of sale or disposition of a security or
interest in a security, for value. The term ``offer to
sell'', ``offer for sale'', or ``offer'' shall include
every attempt or offer to dispose of, or solicitation
of an offer to buy, a security or interest in a
security, for value. The terms defined in this
paragraph and the term ``offer to buy'' as used in
subsection (c) of section 5 shall not include
preliminary negotiations or agreements between an
issuer (or any person directly or indirectly
controlling or controlled by an issuer, or under direct
or indirect common control with an issuer) and any
underwriter or among underwriters who are or are to be
in privity of contract with an issuer (or any person
directly or indirectly controlling or controlled by an
issuer, or under direct or indirect common control with
an issuer). Any security given or delivered with, or as
a bonus on account of, any purchase of securities or
any other thing, shall be conclusively presumed to
constitute a part of the subject of such purchase and
to have been offered and sold for value. The issue or
transfer of a right or privilege, when originally
issued or transferred with a security, giving the
holder of such security the right to convert such
security into another security of the same issuer or of
another person, or giving a right to subscribe to
another security of the same issuer or of another
person, which right cannot be exercised until some
future date, shall not be deemed to be an offer or sale
of such other security; but the issue or transfer of
such other security upon the exercise of such right of
conversion or subscription shall be deemed a sale of
such other security. Any offer or sale of a security
futures product by or on behalf of the issuer of the
securities underlying the security futures product, an
affiliate of the issuer, or an underwriter, shall
constitute a contract for sale of, sale of, offer for
sale, or offer to sell the underlying securities. Any
offer or sale of a security-based swap by or on behalf
of the issuer of the securities upon which such
security-based swap is based or is referenced, an
affiliate of the issuer, or an underwriter, shall
constitute a contract for sale of, sale of, offer for
sale, or offer to sell such securities. The publication
or distribution by a broker or dealer of a research
report about an emerging growth company that is the
subject of a proposed public offering of the common
equity securities of such emerging growth company
pursuant to a registration statement that the issuer
proposes to file, or has filed, or that is effective
shall be deemed for purposes of paragraph (10) of this
subsection and section 5(c) not to constitute an offer
for sale or offer to sell a security, even if the
broker or dealer is participating or will participate
in the registered offering of the securities of the
issuer. As used in this paragraph, the term ``research
report'' means a written, electronic, or oral
communication that includes information, opinions, or
recommendations with respect to securities of an issuer
or an analysis of a security or an issuer, whether or
not it provides information reasonably sufficient upon
which to base an investment decision.
(4) The term ``issuer'' means every person who issues
or proposes to issue any security; except that with
respect to certificates of deposit, voting-trust
certificates, or collateral-trust certificates, or with
respect to certificates of interest or shares in an
unincorporated investment trust not having a board of
directors (or persons performing similar functions) or
of the fixed, restricted management, or unit type, the
term ``issuer'' means the person or persons performing
the acts and assuming the duties of depositor or
manager pursuant to the provisions of the trust or
other agreement or instrument under which such
securities are issued; except that in the case of an
unincorporated association which provides by its
articles for limited liability of any or all of its
members, or in the case of a trust, committee, or other
legal entity, the trustees or members thereof shall not
be individually liable as issuers of any security
issued by the association, trust, committee, or other
legal entity; except that with respect to equipment-
trust certificates or like securities, the term
``issuer'' means the person by whom the equipment or
property is or is to be used; and except that with
respect to fractional undivided interests in oil, gas,
or other mineral rights, the term ``issuer'' means the
owner of any such right or of any interest in such
right (whether whole or fractional) who creates
fractional interests therein for the purpose of public
offering.
(5) The term ``Commission'' means the Securities and
Exchange Commission.
(6) The term ``Territory'' means Puerto Rico, the
Virgin Islands, and the insular possessions of the
United States.
(7) The term ``interstate commerce'' means trade or
commerce in securities or any transportation or
communication relating thereto among the several States
or between the District of Columbia or any Territory of
the United States and any State or other Territory, or
between any foreign country and any State, Territory,
or the District of Columbia, or within the District of
Columbia.
(8) The term ``registration statement'' means the
statement provided for in section 6, and includes any
amendment thereto and any report, document, or
memorandum filed as part of such statement or
incorporated therein by reference.
(9) The term ``write'' or ``written'' shall include
printed, lithographed, or any means of graphic
communication.
(10) The term ``prospectus'' means any prospectus,
notice, circular, advertisement, letter, or
communication, written or by radio or television, which
offers any security for sale or confirms the sale of
any security; except that (a) a communication sent or
given after the effective date of the registration
statement (other than a prospectus permitted under
subsection (b) of section 10) shall not be deemed a
prospectus if it is proved that prior to or at the same
time with such communication a written prospectus
meeting the requirements of subsection (a) of section
10 at the time of such communication was sent or given
to the person to whom the communication was made, and
(b) a notice, circular, advertisement, letter, or
communication in respect of a security shall not be
deemed to be a prospectus if it states from whom a
written prospectus meeting the requirements of section
10 may be obtained and, in addition, does no more than
identify the security, state the price thereof, state
by whom orders will be executed, and contain such other
information as the Commission, by rules or regulations
deemed necessary or appropriate in the public interest
and for the protection of investors, and subject to
such terms and conditions as may be prescribed therein,
may permit.
(11) The term ``underwriter'' means any person who
has purchased from an issuer with a view to, or offers
or sells for an issuer in connection with, the
distribution of any security, or participates or has a
direct or indirect participation in any such
undertaking, or participates or has a participation in
the direct or indirect underwriting of any such
undertaking; but such term shall not include a person
whose interest is limited to a commission from an
underwriter or dealer not in excess of the usual and
customary distributors' or sellers' commission. As used
in this paragraph the term ``issuer'' shall include, in
addition to an issuer, any person directly or
indirectly controlling or controlled by the issuer, or
any person under direct or indirect common control with
the issuer.
(12) The term ``dealer'' means any person who engages
either for all or part of his time, directly or
indirectly, as agent, broker, or principal, in the
business of offering, buying, selling, or otherwise
dealing or trading in securities issued by another
person.
(13) The term ``insurance company'' means a company
which is organized as an insurance company, whose
primary and predominant business activity is the
writing of insurance or the reinsuring of risks
underwritten by insurance companies, and which is
subject to supervision by the insurance commissioner,
or a similar official or agency, of a State or
territory or the District of Columbia; or any receiver
or similar official or any liquidating agent for such
company, in his capacity as such.
(14) The term ``separate account'' means an account
established and maintained by an insurance company
pursuant to the laws of any State or territory of the
United States, the District of Columbia, or of Canada
or any province thereof, under which income, gains and
losses, whether or not realized, from assets allocated
to such account, are, in accordance with the applicable
contract, credited to or charged against such account
without regard to other income, gains, or losses of the
insurance company.
(15) The term ``accredited investor'' shall mean--
[(i)] (A) a bank as defined in section
3(a)(2) whether acting in its individual or
fiduciary capacity; an insurance company as
defined in paragraph (13) of this subsection;
an investment company registered under the
Investment Company Act of 1940 or a business
development company as defined in section
2(a)(48) of that Act; a Small Business
Investment Company licensed by the Small
Business Administration; or an employee benefit
plan, including an individual retirement
account, which is subject to the provisions of
the Employee Retirement Income Security Act of
1974, if the investment decision is made by a
plan fiduciary, as defined in section 3(21) of
such Act, which is either a bank, insurance
company, or registered investment adviser; [or]
[(ii)] (B) any person who, on the basis of
such factors as financial sophistication, net
worth, knowledge, and experience in financial
matters, or amount of assets under management
qualifies as an accredited investor under rules
and regulations which the Commission shall
prescribe[.]; or
(C) an individual holding such
certifications, designations, or credentials as
the Commission determines necessary or
appropriate in the public interest or for the
protection of investors, where such list of
certifications, designations, or credentials
shall be no less broad than those
certifications, designations, or credentials
described in the amendments made to section
230.501 of title 17, Code of Federal
Regulations, by the final rule of the
Commission titled ``Accredited Investor
Definition'' (85 Fed. Reg. 64234; published
October 9, 2020).
(16) The terms ``security future'', ``narrow-based
security index'', and ``security futures product'' have
the same meanings as provided in section 3(a)(55) of
the Securities Exchange Act of 1934.
(17) The terms ``swap'' and ``security-based swap''
have the same meanings as in section 1a of the
Commodity Exchange Act (7 U.S.C. 1a).
(18) The terms ``purchase'' or ``sale'' of a
security-based swap shall be deemed to mean the
execution, termination (prior to its scheduled maturity
date), assignment, exchange, or similar transfer or
conveyance of, or extinguishing of rights or
obligations under, a security-based swap, as the
context may require.
(19) The term ``emerging growth company'' means an
issuer that had total annual gross revenues of less
than $1,000,000,000 (as such amount is indexed for
inflation every 5 years by the Commission to reflect
the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics,
setting the threshold to the nearest 1,000,000) during
its most recently completed fiscal year. An issuer that
is an emerging growth company as of the first day of
that fiscal year shall continue to be deemed an
emerging growth company until the earliest of--
(A) the last day of the fiscal year of the
issuer during which it had total annual gross
revenues of $1,000,000,000 (as such amount is
indexed for inflation every 5 years by the
Commission to reflect the change in the
Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics,
setting the threshold to the nearest 1,000,000)
or more;
(B) the last day of the fiscal year of the
issuer following the fifth anniversary of the
date of the first sale of common equity
securities of the issuer pursuant to an
effective registration statement under this
title;
(C) the date on which such issuer has, during
the previous 3-year period, issued more than
$1,000,000,000 in non-convertible debt; or
(D) the date on which such issuer is deemed
to be a ``large accelerated filer'', as defined
in section 240.12b-2 of title 17, Code of
Federal Regulations, or any successor thereto.
(b) Consideration of Promotion of Efficiency, Competition,
and Capital Formation.--Whenever pursuant to this title the
Commission is engaged in rulemaking and is required to
consider or determine whether an action is necessary or
appropriate in the public interest, the Commission shall also
consider, in addition to the protection of investors, whether
the action will promote efficiency, competition, and capital
formation.
* * * * * * *
----------
DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
* * * * * * *
TITLE IV--REGULATION OF ADVISERS TO HEDGE FUNDS AND OTHERS
* * * * * * *
SEC. 413. ADJUSTING THE ACCREDITED INVESTOR STANDARD.
(a) In General.--The Commission shall adjust any net worth
standard for an accredited investor, as set forth in the rules
of the Commission under the Securities Act of 1933, so that the
individual net worth of any natural person, or joint net worth
with the spouse of that person, at the time of purchase, is
more than $1,000,000 (as such amount is adjusted periodically
by rule of the Commission), excluding the value of the primary
residence of such natural person, except that during the 4-year
period that begins on the date of enactment of this Act, any
net worth standard shall be $1,000,000, excluding the value of
the primary residence of such natural person.
(b) Review and Adjustment.--
(1) Initial review and adjustment.--
(A) Initial review.--The Commission may
undertake a review of the definition of the
term ``accredited investor'', as such term
applies to natural persons, to determine
whether the requirements of the definition,
excluding the requirement relating to the net
worth standard described in subsection (a),
should be adjusted or modified for the
protection of investors, in the public
interest, and in light of the economy.
(B) Adjustment or modification.--Upon
completion of a review under subparagraph (A),
the Commission may, by notice and comment
rulemaking, make such adjustments to the
definition of the term ``accredited investor'',
excluding adjusting or modifying the
requirement relating to the net worth standard
described in subsection (a), as such term
applies to natural persons, as the Commission
may deem appropriate for the protection of
investors, in the public interest, and in light
of the economy.
(2) Subsequent reviews and adjustment.--
(A) Subsequent reviews.--Not earlier than 4
years after the date of enactment of this Act,
and not less frequently than once every 4 years
thereafter, the Commission shall undertake a
review of the definition, in its entirety, of
the term ``accredited investor'', as defined in
section 230.215 of title 17, Code of Federal
Regulations, or any successor thereto, as such
term applies to natural persons, to determine
whether the requirements of the definition
should be adjusted or modified for the
protection of investors, in the public
interest, and in light of the economy.
(B) Adjustment or modification.--Upon
completion of a review under subparagraph (A),
the Commission may, by notice and comment
rulemaking, make such adjustments to the
definition of the term ``accredited investor'',
as defined in section 230.215 of title 17, Code
of Federal Regulations, or any successor
thereto, as such term applies to natural
persons, as the Commission may deem appropriate
for the protection of investors, in the public
interest, and in light of the economy.
(3) Periodic review of certifications, designations,
and credentials.--Not later than 18 months after the
date of the enactment of this paragraph and not less
frequently than once every 5 years thereafter, the
Commission shall--
(A) review the list of certifications,
designations, and credentials accepted with
respect to meeting the requirements of the
definition of ``accredited investor'' under
section 2(a)(15) of the Securities Act of 1933
(15 U.S.C. 77b(a)(15)) and rules issued
pursuant to such section;
(B) add such certifications, designations,
and credentials to such list as the Commission
determines are substantially similar in
measuring the financial sophistication,
knowledge, and experience in financial matters
of an individual to the certifications,
designations, and credentials included on such
list at the time of such review; and
(C) adjust or modify such list as the
Commission determines necessary or appropriate
in the public interest or for the protection of
investors.
* * * * * * *
[all]