The Hedge Fund Association (HFA) has welcomed the passing of the Fair Investment Opportunities for Professional Experts Act by the US House of Representatives in a move the body said incorporates the addition of a knowledge and education-based category of accredited investors.
The House bill would amend Section 2(a)(15) of the Securities Act of 1933, the definition of "accredited investor" that determines which investors may participate in private securities offerings not registered with the US Securities and Exchange Commission (SEC).
The HFA, an international not-for-profit organisation representing the interests of investors, hedge funds and service providers, said it believes that the bill provides a much needed practical update to the current definition, while promoting capital formation.
"The Hedge Fund Association applauds the bipartisan passage of H.R. 2187. HFA will continue to support reasonable changes by Congress and the SEC to the accredited investor definition, and the private offering exemptions in general, provided such changes enhance investor protection and promote capital formation without further limiting investor access to alternative investment funds," said Mitch Ackles, HFA president.
Hedge Fund Association, Fair Investment Opportunities for Professional Experts Act, US House of Representatives, Congress, Mitch Ackles, Cayman