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HR 3348

Accredited Investor Definition Review Act

119th Congress Introduced by Bill Huizenga

HR 3348 expands the accredited investor definition, allowing more individuals with financial credentials access to private investment opportunities, enhancing financial inclusion.

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-134.
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Bill Summary · HR 3348

Summary of HR 3348: Accredited Investor Definition Review Act

Purpose and Intent

The Accredited Investor Definition Review Act (HR 3348) aims to amend the Securities Act of 1933 and the Dodd-Frank Wall Street Reform and Consumer Protection Act. The primary goal of the bill is to expand the definition of "accredited investor" to include individuals who possess certain certifications, designations, or credentials that demonstrate their financial sophistication and understanding of investment risks. This change seeks to make investment opportunities in high-growth private companies more accessible to a broader range of investors, rather than limiting them to wealthy individuals.

Key Provisions

  1. Expansion of Accredited Investor Definition:

    • The bill amends Section 2(a)(15) of the Securities Act to allow individuals with specific certifications, designations, or credentials, as determined by the Securities and Exchange Commission (SEC), to qualify as accredited investors.
    • The SEC will maintain a list of acceptable certifications and will consider attributes that reflect financial knowledge and experience.

  2. Periodic Review Requirement:

    • The SEC is mandated to conduct a review of the list of qualifying certifications, designations, and credentials within 18 months of the bill's enactment and at least once every five years thereafter.
    • This review will allow the SEC to add or modify the list based on evolving standards of financial sophistication.

Impact

  • Who is Affected:

    • The bill primarily impacts individual investors who may not currently qualify as accredited investors but possess relevant financial credentials.
    • It also affects the SEC, which will be tasked with the ongoing review and maintenance of the list of qualifying certifications.

  • Investment Opportunities:

    • By broadening the definition of accredited investors, the bill aims to democratize access to investment opportunities in private markets, potentially increasing participation from a wider demographic.

Legislative Timeline

  • Introduced: May 13, 2025
  • Reported (Amended): June 4, 2025, by the Committee on Financial Services (H. Rept. 119-134).
  • Committee Actions:
    • Ordered to be reported (amended) on May 20, 2025, with a vote of 34-16.
    • Consideration and markup session held on May 20, 2025.

Conclusion

HR 3348 represents a significant shift in the regulatory landscape surrounding accredited investors, aiming to enhance financial inclusion and broaden access to investment opportunities. By requiring the SEC to regularly update the criteria for accredited investor status, the bill seeks to adapt to changing market conditions and investor needs.

Compiled from official sources — confirm details with the bill’s official record.

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