Congressman Downing Introduces Informed Investor Access Act to Expand Investment Opportunities

WASHINGTON, D.C. – Today, Congressman Troy Downing (MT-02) introduced the Informed Investor Access Act, legislation to modernize the definition of an “accredited investor” and expand access to private investment opportunities for Americans receiving professional financial advice.

Under current law, accredited investor status is primarily based on income and net worth thresholds. This framework often limits certain investment opportunities to individuals who already have significant wealth, while excluding others who may be financially sophisticated or working with regulated financial professionals.

The Informed Investor Access Act would create a new pathway for individuals receiving personalized investment advice or recommendations from a registered investment adviser or registered broker-dealer to qualify as accredited investors for the applicable transaction.

“Building wealth should not be reserved only for those who are already wealthy,” said Congressman Downing. “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 The Informed Investor Access Act modernizes this outdated standard by recognizing financial sophistication and professional guidance, not just income and net worth.”

Critically, the legislation expands access without weakening investor protections. Registered investment advisers are subject to fiduciary duties under the Investment Advisers Act. Broker-dealers are held to Regulation Best Interest standards under the Securities Exchange Act. These standards require financial professionals to consider a client’s financial situation, investment objectives, and risk tolerance when making recommendations.

“As Montana’s former securities and insurance regulator, I know investor protection and capital formation go hand in hand,” continued Congressman Downing. “This bill allows hardworking Americans to grow their wealth through new investment opportunities while keeping important guardrails in place. 

Read the full bill text HERE.

Statements of Support:

Rep. Mike Lawler (NY-17) and Rep. Tim Moore (NC-14) are original cosponsors of the bill. Supporting organizations include the American Securities Association, Bond Market Association, Financial Services Institute, Financial Technology Association, Institute for Portfolio Alternatives, Investment Advisers Association, National Association of Insurance and Financial Advisors, and U.S. Chamber of Commerce.

American Securities Association: 

"ASA applauds Rep. Downing for giving every American — not just the wealthy — the opportunity to participate in the American dream. The Informed Investor Access Act broadens investor access while preserving important investor protections that make our markets the strongest in the world." - American Securities Association President and CEO Chris Iacovella

Bond Market Association: 

“The Bond Market Association, the Washington, DC-based trade association that exclusively represents securities dealers and banks whose primary focus is the U.S. fixed income markets, fully supports Rep. Downing’s Informed Investor Access Act. By allowing individuals working with registered advisors to qualify as accredited investors, individuals would be able unlock access to more markets and securities closed to those that are unaccredited. We applaud Rep. Downing’s work on this important legislation and call on HFSC Leadership to work to advance the bill in the 119th Congress.”

Investment Advisers Association:

“The IAA applauds Congressman Downing for advancing legislation to modernize and expand the accredited investor definition, including by creating a pathway for clients of fiduciary investment advisers to qualify. Investment advisers’ fiduciary duty provides a critical investor safeguard by requiring that recommendations be made in each client’s best interest. By establishing additional pathways to accredited investor status while preserving strong investor protections, this legislation would broaden access to investment opportunities, support capital formation, and enable more Americans to participate in the growth and innovation of our economy.”

Institute for Portfolio Alternatives:

“Financial sophistication should not be measured by wealth alone. The Informed Investor Access Act modernizes the accredited investor framework by creating a responsible pathway for individuals who receive personalized investment advice or recommendations from regulated investment advisers or broker-dealers in connection with a private-market investment. This approach expands access while keeping important investor-protection standards in place. IPA is proud to support this legislation and thanks Congressman Troy Downing for his leadership in expanding investor choice, strengthening capital formation and opening more opportunity to American investors.” - Anya Coverman, President & CEO, Institute for Portfolio Alternatives

Financial Services Institute:

“Financial advisors play a critical role in helping investors evaluate opportunities and build financial plans that reflect their unique goals and risk tolerance," said FSI President & CEO Dale Brown. "The Informed Investor Access Act recognizes the value of that relationship by expanding access to investment opportunities for investors who choose to work with a trusted financial advisor. We commend Rep. Downing for introducing this legislation and remain committed to advancing policies that preserve investor choice, bolster access to financial advice and help more Americans achieve long-term financial security."

Financial Technology Association:

“Financial status shouldn’t determine access to investment opportunities,” said Penny Lee, President and CEO of the Financial Technology Association. “We strongly support Rep. Downing’s Informed Investor Access Act, which will expand the definition of an accredited investor and open up wealth-building avenues for individuals working with registered professionals.” 

United States Chamber of Commerce:

“The U.S. Chamber of Commerce strongly supports the Informed Investor Access Act, sponsored by Rep. Downing. For too long, the SEC's accredited investor framework has left millions of investors on the sidelines of private capital markets simply because they do not meet arbitrary income or net worth thresholds. This bill will broaden the definition of accredited investors to include individuals who receive investment advice from registered investment advisers and broker-dealers. Doing so would be a commonsense step that expands investor access to private markets and fosters the capital formation that drives American innovation.” – Kristen Malinconico, Executive Director, Center for Capital Markets Competitiveness, U.S. Chamber of Commerce

Background:

The current accredited investor framework relies heavily on income and net worth thresholds. This approach can exclude individuals who have financial knowledge or access to professional guidance but do not meet existing wealth-based requirements.

The Informed Investor Access Act addresses this issue by amending Section 2(a)(15) of the Securities Act of 1933 to add a new category of accredited investor for individuals receiving investment advice or recommendations from a registered investment adviser or registered broker-dealer.

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