Dodd-Frank

The Dodd-Frank Wall Street Reform and Consumer Protection Act

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SEC. 413. ADJUSTING THE ACCREDITED INVESTOR STANDARD.
(a) IN GENERAL.—The Commission shall adjust any net worth
standard for an accredited investor, as set forth in the rules of
the Commission under the Securities Act of 1933, so that the
individual net worth of any natural person, or joint net worth
with the spouse of that person, at the time of purchase, is more
than $1,000,000 (as such amount is adjusted periodically by rule
of the Commission), excluding the value of the primary residence
of such natural person, except that during the 4-year period that
begins on the date of enactment of this Act, any net worth standard
shall be $1,000,000, excluding the value of the primary residence
of such natural person.
(b) REVIEW AND ADJUSTMENT.—
(1) INITIAL REVIEW AND ADJUSTMENT.—
(A) INITIAL REVIEW.—The Commission may undertake
a review of the definition of the term ‘‘accredited investor’’,
as such term applies to natural persons, to determine
whether the requirements of the definition, excluding the
requirement relating to the net worth standard described
in subsection (a), should be adjusted or modified for the
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protection of investors, in the public interest, and in light
of the economy.
(B) ADJUSTMENT OR MODIFICATION.—Upon completion
of a review under subparagraph (A), the Commission may,
by notice and comment rulemaking, make such adjustments
to the definition of the term ‘‘accredited investor’’, excluding
adjusting or modifying the requirement relating to the
net worth standard described in subsection (a), as such
term applies to natural persons, as the Commission may
deem appropriate for the protection of investors, in the
public interest, and in light of the economy.
(2) SUBSEQUENT REVIEWS AND ADJUSTMENT.—
(A) SUBSEQUENT REVIEWS.—Not earlier than 4 years
after the date of enactment of this Act, and not less frequently
than once every 4 years thereafter, the Commission
shall undertake a review of the definition, in its entirety,
of the term ‘‘accredited investor’’, as defined in section
230.215 of title 17, Code of Federal Regulations, or any
successor thereto, as such term applies to natural persons,
to determine whether the requirements of the definition
should be adjusted or modified for the protection of investors,
in the public interest, and in light of the economy.
(B) ADJUSTMENT OR MODIFICATION.—Upon completion
of a review under subparagraph (A), the Commission may,
by notice and comment rulemaking, make such adjustments
to the definition of the term ‘‘accredited investor’’, as
defined in section 230.215 of title 17, Code of Federal
Regulations, or any successor thereto, as such term applies
to natural persons, as the Commission may deem appropriate
for the protection of investors, in the public interest,
and in light of the economy.

SEC. 926.  DISQUALIFYING FELONS AND OTHER “BAD ACTORS” FROM REGULATION D OFFERINGS.
Not later than 1 year after the date of  enactment of this Act, the Commission shall issue rules for the disqualification of offerings and sales of securities made under section 230.506 of title 17, Code of Federal Regulations, that—
(1)  are substantially similar to the provisions of section 230.262 of title 17, Code of Federal Regulations, or any successor thereto; and
(2)  disqualify any offering or sale of securities by a person that–
(A)  is subject to a final order of a State securities commission (or an agency or officer of a State performing like functions), a State authority that supervises or examines banks, savings associations, or credit unions, a State insurance commission (or an agency or officer of a State performing like functions), an appropriate Federal banking agency, or the National Credit Union Administration, that–
(i)  bars the person from–
(I)  association with an entity regulated by such commission, authority, agency, or officer;
(II)  engaging in the business of securities, insurance, or banking; or
(III)  engaging in savings association or credit union activities; or
(ii)  constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct within the 10-year period ending on the date of the filing of the offer or sale; or
(B)  has been convicted of any felony or misdemeanor in connection with the purchase or sale of any security or involving the making of any false filing with the Commission.

Page 124 STAT. 1852