Fair Investment Opportunities for Professional Experts Act

This bill widens who can qualify as an “accredited investor,” the group allowed to invest in certain private deals that aren’t registered with the SEC. It adds people with proven education or job experience in investing-related areas, as confirmed by a self-regulatory organization, if the SEC agrees they have the needed knowledge. This can open more private investment options to people with the right skills, not just those with high wealth or income.

Key points

• Who is affected: Individuals seeking to invest in private offerings that require accredited status.
• What changes:
  • Keeps and clarifies existing ways to qualify, including:
    • Net worth over $1,000,000, not counting your primary home; mortgage debt over the home’s value counts. These amounts will be adjusted for inflation every 5 years.
    • Income over $200,000 (single) or $300,000 (with spouse or spousal equivalent) for the past two years, with a similar expectation this year.
    • Being a licensed broker or investment adviser in good standing.
  • Adds a new path: people the SEC deems to have the right education or job experience, verified by a self-regulatory organization.
• When: The SEC must update its rules within 180 days after the law takes effect to match these changes (Regulation D).