Private Investing: New Rules for Professional Experts
Also known as: Fair Investment Opportunities for Professional Experts Act
Legislative Progress
Key Points
- Congress is changing the rules about who can put money into private companies and hedge funds. Currently, these investments are mostly restricted to people who are already very wealthy, known as accredited investors.
- The bill allows people to qualify based on their professional knowledge, not just their bank account. This includes licensed stockbrokers and investment advisers who are in good standing with regulators.
- It also opens the door for people with specific education or job experience to invest in their areas of expertise. For example, a professional with deep experience in a specific industry could be allowed to invest in startups in that field.
- For those who qualify by wealth, the bill keeps the limit at $1 million in net worth (excluding their home) or a $200,000 annual income. A new rule will raise these limits every five years to keep up with the rising cost of living.
- The Securities and Exchange Commission must update its official rules within 180 days of this bill becoming law. This change aims to give more people a chance to grow their savings through private deals that were previously off-limits.
Milestones
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Motion to reconsider laid on the table Agreed to without objection.
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 397 - 12 (Roll no. 173). (text: CR H2869-2870)
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): 397 - 12 (Roll no. 173). (text: CR H2869-2870)
Considered as unfinished business. (consideration: CR H2878-2879)
Vote Results
1 voteOn Motion to Suspend the Rules and Pass, as Amended
Source Information
Document Type
Congressional Bill
Official Title
Fair Investment Opportunities for Professional Experts Act
Sponsor
Cosponsors
(3)Data Sources
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