House of Representatives Advances Bills Amending Federal Securities Laws

The U.S. House of Representatives voted to amend federal securities laws pertaining to senior investors, initial public offerings for small- and mid-size businesses, and the definition of "accredited investor."

The House approved the following bills:

• H.R. 2593, the Senior Security Act of 2023, which would establish the "SEC Senior Investor Taskforce" and provide reports and recommendations addressing issues faced by senior investors over the age of 65.
• H.R. 2812, the Middle Market IPO Underwriting Study Act, which would require GAO to study the costs associated with initial public offerings for small- and medium-sized companies, including underwriting expenses.
• H.R. 2793, the Encouraging Public Offerings Act of 2023, which would allow an issuer to (i) file a confidential draft registration statement and (ii) expand the ability for certain issuers to test the waters with potential investors before filing a registration statement.
• H.R. 835, the Fair Investment Opportunities for Professional Experts Act, which would expand the definition of "accredited investor" to include individuals with specific licenses, qualifying educational backgrounds or job experiences.
• H.R.1579, the Accredited Investor Definition Review Act, which would allow the SEC to expand the definition for "accredited investors." The bill would also require the SEC to review the list of certifications to qualify as an accredited investor, which would be reviewed within 18 months of the bill passing and then again in five year intervals.
• H.R. 2608, which would amend reporting requirements for emerging growth companies by requiring only two years of audited financial statements when engaged in acquisitions or follow-on offerings.
• H.R. 2610, which would allow issuers to file draft registration statements with the SEC for confidential review. The bill would also amend financial statement requirements for emerging growth companies by requiring two years of audited financial statements in connection with public offerings and spin-off transactions, rather than the previous three-year requirement.