INVEST Act Clears House

The House of Representatives has passed the Incentivizing New Ventures and Economic Strength Through Capital Formation (INVEST) Act by a vote of 302 to 123. Included in the bill is a provision that would allow collective investment trust (CIT) investments in 403(b) plans. Another provision directs the Securities Exchange Commission (SEC) to expand the definition of “accredited investor” to include an individual who is certified through an examination that is established within one year by the SEC and administered by the Financial Industry Regulatory Authority (FINRA). The test would determine competency with respect to types of securities, disclosure requirements, corporate governance, financial statements, unregistered securities, and conflicts of interest. Certain types of private or illiquid investments are only available to accredited investors. Individuals that can be accredited investors currently need to meet certain financial or professional requirements. 

The bill now moves on to the Senate.