H.R. 3348 — Accredited Investor Definition Review Act

This section expands the definition of accredited investor under the Securities Act of 1933 to include, as a new subparagraph (C), an individual holding certifications, designations, or credentials that the Securities and Exchange Commission (SEC) determines necessary or appropriate in the public interest or for investor protection. (Such list must include professional certifications designated in the SEC's October 9, 2020, order (85 Fed. Reg. 64234) and consider attributes no less broad than those specified in amendments to 17 CFR 230.501(a)(10) under the SEC's October 9, 2020, final rule on the accredited investor definition. Thus, it broadens the pool of qualified natural persons eligible to invest in unregistered securities offerings exempt from full SEC registration requirements under Regulation D, beyond existing financial thresholds.)

This section directs the Securities and Exchange Commission (SEC), not later than 18 months after enactment and every five years thereafter, to (1) review the list of certifications, designations, and credentials qualifying natural persons as accredited investors under Rule 501(a)(10) of Regulation D (17 C.F.R. 230.501(a)(10)); (2) add substantially similar certifications, designations, and credentials measuring an individual's financial sophistication, knowledge, and experience; and (3) adjust or modify the list as necessary in the public interest or for investor protection. (Accredited investor status exempts individuals from registration requirements for certain private securities offerings.)