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Bill114th CongressFiled Apr 30, 2015Finance and Financial Sector
H.R. 2187

Fair Investment Opportunities for Professional Experts Act

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary passed house amended (Feb 1, 2016)

Fair Investment Opportunities for Professional Experts Act

(Sec. 2) This bill amends the Securities Act of 1933 to add to the definition of accredited investor any natural person whose individual net worth, or joint net worth with his or her spouse, exceeds $1 million (adjusted every five years for inflation).

The person's net worth shall exclude:

  • the person's primary residence; and
  • as a liability any indebtedness secured by the primary residence, up to the estimated fair market value of the residence at the time of the sale of securities.

Indebtedness secured by the person's primary residence in excess of the residence's estimated fair market value at the time of the sale of securities, however, shall be included in net worth as a liability.

An accredited investor shall also include any natural person:

  • whose individual income exceeded $200,000 in each of the two most recent years, or whose joint income with spouse exceeded $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year;
  • currently licensed or registered as a broker or investment adviser by the Securities and Exchange Commission, the Financial Industry Regulatory Authority (FINRA) (or an equivalent self-regulatory organization), or a state division responsible for licensing or registration of individuals in connection with securities activities; or
  • whose demonstrable education or job experience qualifies as professional knowledge of a subject related to a particular investment, and whose education or job experience is verified by the FINRA or an equivalent self-regulatory organization.

What just happenedFeb 2, 2016

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Who’s behind it

Rep. Schweikert, David [R-AZ-6](R-AZ)Sponsor
1 cosponsor1 D
Read on Congress.gov
1cosponsors2committees19actions2related bills6subjects
  1. Feb 2, 2016IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

    Banking, Housing, and Urban Affairs Committee
  2. Feb 1, 2016FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 347 - 8 (Roll no. 46). (text: CR H378)

  3. Feb 1, 2016FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  4. Feb 1, 2016Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 347 - 8 (Roll no. 46).(text: CR H378)

  5. Feb 1, 2016FloorH30000

    Considered as unfinished business. (consideration: CR H401)

  6. Feb 1, 2016FloorH37220

    At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.

  7. Feb 1, 2016FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 2187.

  8. Feb 1, 2016FloorH30000

    Considered under suspension of the rules. (consideration: CR H378-379)

  9. Feb 1, 2016FloorH30300

    Mr. Garrett moved to suspend the rules and pass the bill, as amended.

  10. Feb 1, 2016CalendarsH12410

    Placed on the Union Calendar, Calendar No. 309.

  11. Feb 1, 2016CommitteeH12200

    Reported (Amended) by the Committee on Financial Services. H. Rept. 114-406.

    Financial Services Committee
  12. Feb 1, 2016Committee5000

    Reported (Amended) by the Committee on Financial Services. H. Rept. 114-406.

    Financial Services Committee
  13. Dec 9, 2015Committee

    Ordered to be Reported (Amended) by the Yeas and Nays: 54 - 2.

    Financial Services Committee
  14. Dec 9, 2015Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  15. Dec 8, 2015Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  16. Jun 16, 2015Committee

    Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Referral.

    Capital Markets Subcommittee
  17. Apr 30, 2015IntroReferralH11100

    Referred to the House Committee on Financial Services.

    Financial Services Committee
  18. Apr 30, 2015IntroReferralIntro-H

    Introduced in House

  19. Apr 30, 2015IntroReferral1000

    Introduced in House

Passed House amendedFeb 1, 201636

Fair Investment Opportunities for Professional Experts Act

(Sec. 2) This bill amends the Securities Act of 1933 to add to the definition of accredited investor any natural person whose individual net worth, or joint net worth with his or her spouse, exceeds $1 million (adjusted every five years for inflation).

The person's net worth shall exclude:

  • the person's primary residence; and
  • as a liability any indebtedness secured by the primary residence, up to the estimated fair market value of the residence at the time of the sale of securities.

Indebtedness secured by the person's primary residence in excess of the residence's estimated fair market value at the time of the sale of securities, however, shall be included in net worth as a liability.

An accredited investor shall also include any natural person:

  • whose individual income exceeded $200,000 in each of the two most recent years, or whose joint income with spouse exceeded $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year;
  • currently licensed or registered as a broker or investment adviser by the Securities and Exchange Commission, the Financial Industry Regulatory Authority (FINRA) (or an equivalent self-regulatory organization), or a state division responsible for licensing or registration of individuals in connection with securities activities; or
  • whose demonstrable education or job experience qualifies as professional knowledge of a subject related to a particular investment, and whose education or job experience is verified by the FINRA or an equivalent self-regulatory organization.
Introduced in HouseApr 30, 2015

Fair Investment Opportunities for Professional Experts Act

This bill directs the Securities and Exchange Commission (SEC) to revise its rules under Regulation D to consider a natural person an accredited investor, regardless of specified income and net worth requirements, if the person certifies to the issuer before the sale of securities to that person that he or she:

  • is a person described in specified other requirements of Regulation D,
  • has retained and used the services of certain banks, savings and loan associations, insurance companies, registered brokers or dealers, or certain other entities or their employees to make an investment decision relative to the securities being offered, or
  • is licensed as an accredited investor by the Financial Industry Regulatory Authority (FINRA) after completing an exam administered by FINRA using specified criteria established by the SEC.

The SEC shall establish such criteria for FINRA to use in administering an exam to license as accredited investors natural persons who don't meet certain income and net worth requirements of Regulation D.

Fair Investment Opportunities for Professional Experts Act — Informed