Press Releases

House Committee on Financial Services Chairman French Hill (AR-02) and Rep. Juan Vargas (CA-52) introduced H.R. 3394, the Fair Investment Opportunities for Professional Experts Act. This bipartisan bill expands the definition of an accredited investor, allowing Americans who demonstrate education, professional experience, or other similar credentials the opportunity to invest in private offerings.

“Wealth alone should not dictate who can and cannot invest in private offerings. Countless individuals – through work, education, or other experiences – have developed the knowledge to make informed investment decisions yet are excluded simply because of their income level. Our bill addresses this imbalance by expanding investment opportunities for capable investors while helping small businesses access the capital they need to grow,” said Chairman Hill.

Background:

Chairman Hill has previously introduced this legislation several times, including in the 117th and 118th Congresses. Because of significant costs and barriers to raising capital in the U.S. public markets, most small companies raise start-up or expansion funds in the private market, where most offerings are limited to “accredited investors.” The current “accredited investor” definition focuses on the financial status of the investor, and as a result, only wealthy individuals can participate in private offerings, barring the majority of Americans from what may be attractive investment opportunities.