Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), introduced the Equal Opportunity for All Investors Act. This legislation will increase opportunities for everyday investors and help American job creators access new sources of capital by expanding who can qualify as an accredited investor.
"The accredited investor regime keeps everyday Americans on the sidelines," said Republican Leader McHenry. "My bill will allow more investors to qualify as "accredited investors', providing them with more opportunities to invest their money the way they want. While Republicans are offering commonsense solutions to help more people access and achieve the American dream, Democrats want to make it harder for everyday investors to grow their wealth under the guise of investor protection. It's time we get serious about equity and ownership in the American economy-- the Equal Opportunity for All Investors Act is a good start."
Investment in most private companies is limited to "accredited investors', which are generally people with either $1M of net worth (excluding the value of their house), individuals who make $200,000, or families that make $300,000. This excludes most Americans from investing in some of the highest-growth phases of companies.
The Equal Opportunity for All Investors Act directs the Securities and Exchange Commission (SEC) to create an examination that individuals with investment knowledge and expertise can take to be certified as an accredited investor.