H.R. 3394 — Fair Investment Opportunities for Professional Experts Act

This section revises the definition of accredited investor under the Securities Act of 1933 by redesignating existing subparagraphs (i) and (ii) of Section 2(a)(15) as (A) and (F), respectively, and inserting new subparagraphs (B) through (E) to include additional natural persons as accredited investors with respect to a proposed securities sale. The new categories are (B) any natural person whose individual or joint net worth with spouse or spousal equivalent exceeds $1 million (adjusted for inflation by the SEC every five years using the CPI for All Urban Consumers, to the nearest $10,000), excluding the primary residence as an asset, excluding secured indebtedness up to the residence's fair market value as a liability (except excess increases within 60 days, other than from acquisition), and including any excess secured indebtedness as a liability; (C) any natural person with individual income exceeding $200,000 or joint income with spouse or spousal equivalent exceeding $300,000 in each of the two most recent years and a reasonable expectation of the same in the current year (amounts also inflation-adjusted); (D) any natural person currently licensed or registered as a broker or investment adviser by the SEC, self-regulatory organization, or state/territorial securities authority and in good standing; and (E) any natural person whom the SEC determines by regulation to have sufficient education or job experience for professional knowledge of the relevant investment, verified by a self-regulatory organization. The SEC must revise the accredited investor definition in Regulation D within 180 days of enactment to conform to these changes.