Bill Details
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would make it easier for an individual to invest in private companies, as long as the person signs a statement saying they understand the risks. The idea is to let more people invest in private issuers if they clearly acknowledge that these investments can be risky and may lose money. The Securities and Exchange Commission would also have to create the required form and set the rules for how this process works.
- An individual could be allowed to invest in a private issuer by attesting, in writing, that they understand the risks of private investments.
- The SEC would have to create the attestation form by rule, and the form could not be longer than two pages.
- The SEC would need to issue the needed rules within one year after the bill becomes law.
Official Summaries
Risk Disclosure and Investor Attestation Act
This bill expands who may be considered an accredited investor for purposes of participating in private offerings of securities. Certain unregistered securities may only be offered to accredited investors.
Specifically, the bill allows an individual to qualify by certifying to the issuer of securities that the individual understands the risks of investment in private issuers. Currently, accredited investors must satisfy certain requirements indicating their reduced exposure to financial risk, including those related to income, net worth, or knowledge and experience.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 145 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 145
To amend the Securities Act of 1933 to permit an individual to invest
in private issuers upon acknowledging the investment risks, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2025
Mr. Davidson introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Securities Act of 1933 to permit an individual to invest
in private issuers upon acknowledging the investment risks, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Risk Disclosure and Investor
Attestation Act''.
SEC. 2. INVESTOR ATTESTATION.
(a) In General.--Section 2(a)(15) of the Securities Act of 1933
(77b(a)(15)) is amended--
(1) by redesignating clause (i) as subparagraph (A);
(2) in subparagraph (A), as so redesignated, by striking
``or'' at the end;
(3) by redesignating clause (ii) as subparagraph (B);
(4) in subparagraph (B), as so redesignated, by striking
the period at the end and inserting ``; and''; and
(5) by adding at the end the following:
``(C) with respect to an issuer, any individual
that has attested to the issuer that the individual
understands the risks of investment in private issuers,
using such form as the Commission shall establish, by
rule, but which form may not be longer than 2 pages in
length.''.
(b) Rulemaking.--Not later than the end of the 1-year period
beginning on the date of enactment of this Act, the Securities and
Exchange Commission shall issue rules to carry out the amendments made
by subsection (a), including establishing the form required under such
amendments.
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