Fair Investment Opportunities for Professional Experts Act

The bill would amend Section 2(a)(15) of the Securities Act of 1933 to codify in statute several criteria for "accredited investor" status, which determines who may participate in private (unregistered) securities offerings. It would lock in the existing net-worth threshold (over $1 million, excluding primary residence) and income thresholds ($200,000 individual or $300,000 joint for each of the past two years), require the SEC to adjust those dollar amounts for inflation every five years, and formally recognize licensed or registered brokers and investment advisers in good standing as automatically qualifying. It would also create a new pathway for individuals whom the SEC determines — by regulation — to have demonstrable education or job experience giving them professional knowledge of a subject related to a particular investment, with that expertise verified by a self-regulatory organization.

The bill would not open private offerings to the general public or change the registration requirements that apply to issuers. Its scope is limited to individual eligibility. The bill separately directs the SEC to revise Regulation D within 180 days of enactment to align with these statutory changes.

Individual investors who currently lack the $1 million net worth or income threshold but hold relevant financial credentials or professional expertise — such as financial analysts, economists, or sector specialists — who would gain access to private securities offerings. Brokers and investment advisers already licensed with the SEC, a self-regulatory organization, or a state securities division would also be formally recognized. Issuers of private securities and self-regulatory organizations tasked with verifying credentials are also directly affected.

If enacted, financially sophisticated professionals who do not meet the wealth thresholds could invest in venture capital funds, private equity, and other unregistered offerings currently off-limits to them. The inflation-adjustment requirement would prevent the net worth and income thresholds from eroding over time. Self-regulatory organizations would take on a new gatekeeping role verifying professional qualifications, raising questions about consistency and cost of that process.

The SEC would have 180 days from enactment to revise the accredited investor definition under Regulation D to conform to the statutory changes. For the new professional-knowledge pathway, the SEC would promulgate regulations establishing what constitutes qualifying education or job experience, and would rely on self-regulatory organizations — such as FINRA — to verify individual credentials. The dollar thresholds for net worth and income would be adjusted automatically by the SEC every five years using the Consumer Price Index for All Urban Consumers, rounded to the nearest $10,000.