Risk Disclosure and Investor Attestation Act

This bill would let more everyday people invest in private companies if they first sign a short form saying they understand the risks. Right now, only “accredited investors” can usually buy these kinds of private shares, and that group is mostly people who meet income, net worth, or expertise tests. This bill adds a new path: you can qualify by certifying to the company that you understand the risks of investing in private issuers.

The Securities and Exchange Commission (SEC) must create a simple risk-acknowledgment form, no longer than two pages, and set the rules for using it within one year of the law taking effect.

• Who is affected: Individual investors and private companies raising money.
• What changes: More people could invest in private offerings by signing an SEC-designed risk form, instead of meeting wealth or income tests.
• When: The SEC has up to one year to issue the rules and the form after the law is enacted.