House Bill Ties Accredited Investor Status to Adviser Advice, Not Net Worth
Rep. Troy Downing, R-Mont., introduced the Informed Investor Access Act on Thursday, legislation that would let individuals qualify as accredited investors based on personalized investment advice or recommendations from a registered investment adviser or broker-dealer, rather than income or net worth alone.
The bill would amend Section 2(a)(15) of the Securities Act of 1933 to add a new category of accredited investor: any natural person the issuer reasonably believes is receiving personalized investment advice or recommendations regarding the applicable transaction from a U.S. Securities and Exchange Commission-registered investment adviser or its supervised person, or from a registered broker-dealer or an associated person acting on its behalf.
The bill defines “investment advice” consistent with the Investment Advisers Act of 1940 and “recommendation” consistent with the SEC’s Regulation Best Interest. It also directs the SEC to make conforming changes to Rule 501(a) of Regulation D and any other rule defining “accredited investor.” As of the bill’s introduction, it had not yet been assigned an H.R. number.
Accredited investor status is currently based largely on income and net worth thresholds. According to the Institute for Portfolio Alternatives, the bill would also address a practical barrier limiting broader use of Rule 506(c) offerings, which permit public marketing of private placements but require issuers to take reasonable steps to verify that each purchaser is accredited.
Downing’s bill is the latest in a series of efforts to revise the definition. In December 2025, the U.S. House of Representatives passed the INVEST Act (H.R. 3383), a package of more than 20 bills that included credential- and exam-based pathways to accredited status; that legislation remains pending in the Senate. Unlike those approaches, Downing’s bill ties eligibility to an ongoing advice relationship with a regulated professional rather than to a certification, exam or credential held independently by the investor.
“Building wealth should not be reserved only for those who are already wealthy,” Downing said. “The current accredited investor framework creates a self-reinforcing barrier. Too often, Americans need wealth to access the investments that can help build wealth. The Informed Investor Access Act modernizes this outdated standard by recognizing financial sophistication and professional guidance, not just income and net worth.”
Rep. Mike Lawler, R-N.Y., and Rep. Tim Moore, R-N.C., are original co-sponsors. Supporting organizations include the American Securities Association, Financial Services Institute, Financial Technology Association, IPA, Investment Advisers Association, National Association of Insurance and Financial Advisors, and U.S. Chamber of Commerce, according to Rep. Downing’s office.
“The accredited investor definition has long treated wealth as the primary measure of financial sophistication,” said Anya Coverman, president and chief executive officer of IPA. “That approach is outdated and excludes capable investors who make investment decisions with the help of regulated financial professionals. The Informed Investor Access Act offers a better model with a clear, advice- or recommendation-based pathway to private-market opportunities that preserves important investor protections.”
Coverman made a similar case in a March 2025 op-ed for AltsWire, writing that investors who demonstrate sophistication through work with a qualified financial professional should be permitted to purchase privately offered securities even without meeting net worth or income thresholds.
American Securities Association president and CEO Chris Iacovella said the bill “broadens investor access while preserving important investor protections that make our markets the strongest in the world.”
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