Summary

Expands who can count as an "accredited investor" by letting the Securities and Exchange Commission add people who hold certain professional certifications, designations, or credentials to the list of qualifying natural persons. It also requires the Commission to review and update that list on a schedule — complete an initial review within 18 months after enactment and at least once every five years thereafter — and to add substantially similar certifications and make changes as needed to protect investors and the public interest.

Key Points

• Authorizes the SEC to add holders of specified professional certifications to the accredited investor category for natural persons.
• Requires the SEC to include certifications listed in its October 9, 2020 order and to consider at least the same scope as its 2020 final rule.
• Mandates the SEC complete an initial review of qualifying certifications within 18 months of enactment.
• Requires the SEC to review and update the list at least once every 5 years thereafter.
• During reviews the SEC must add substantially similar certifications and may adjust the list for the public interest or investor protection.
• Makes only small technical edits and renames two clauses in the existing accredited investor definition.
• Expanding accepted credentials could broaden access to private offerings for some individual investors.
• No new appropriation or explicit funding is provided; the rule relies on SEC rulemaking and administrative processes.

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