Legislation introduced in the U.S. House of Representatives on July 3 would allow individuals to qualify as accredited investors by receiving personalized investment advice from a registered investment adviser or broker-dealer, bypassing traditional income and net-worth thresholds. The Informed Investor Access Act, sponsored by Rep. Troy Downing (R-Mont.), aims to broaden participation in private markets such as private equity, venture capital, and alternative asset classes.
Under current Securities and Exchange Commission rules, accredited investor status requires an individual to have a net worth exceeding $1 million (excluding primary residence) or annual income above $200,000 ($300,000 with a spouse) for the past two years. Industry groups have long argued that this framework excludes financially sophisticated investors who lack high wealth but rely on professional guidance.
Downing, a former Montana securities and insurance regulator, said the bill addresses a "self-reinforcing barrier" where wealth is needed to access investments that build wealth. The measure would amend Section 2(a)(15) of the Securities Act of 1933 to add a new accredited investor category for those receiving advice or recommendations from a registered investment adviser or broker-dealer. Advisers operate under fiduciary duties under the Investment Advisers Act, while broker-dealers must comply with Regulation Best Interest, both requiring consideration of a client's financial situation and risk tolerance.
The bill also targets practical hurdles in Rule 506(c) offerings, which allow public marketing of private deals but require issuers to verify each purchaser's accredited status. By shifting verification to the adviser-client relationship, the legislation could streamline access for advised investors.
Support for the proposal came from more than half a dozen industry organizations, including the American Securities Association, Bond Dealers of America, Financial Technology Association, and the Institute for Portfolio Alternatives. Chris Iacovella, ASA president and CEO, said the bill "broadens investor access while preserving important investor protections." The Institute for Portfolio Alternatives called the current approach "outdated" and praised the reform as "smart, balanced" without lowering guardrails.
Adviser advocacy groups also endorsed the measure. The Investment Advisers Association noted that "investment advisers’ fiduciary duty provides a critical investor safeguard." Dale Brown, president and CEO of the Financial Services Institute, said the bill "recognizes the value of that relationship by expanding access to investment opportunities for investors who choose to work with a trusted financial advisor."
The bill arrives amid growing interest in private markets, which have historically been dominated by high-net-worth investors. According to a recent HSBC survey, 57% of affluent investors use AI for research, but 59% still trust human advisors for final decisions, underscoring the role of professional advice in investment decisions. Separately, a BNY Wealth survey found that 96% of ultra-high-net-worth investors use AI weekly, yet advisors remain a key human check.
If enacted, the Informed Investor Access Act could reshape wealth management by enabling RIAs and broker-dealers to unlock private-market access for a broader client base. The bill does not reduce existing investor protections, sponsors emphasized, but rather leverages the regulatory framework already governing advisers and broker-dealers.
