Sponsor
Warren Davidson
Representative · R-OH
Representative · R-OH
The bill standardizes and shortens the investor attestation process to expand and simplify retail access to private offerings, but it raises the risk of investor losses and creates additional compliance and enforcement costs.
Non-accredited individual investors (including small-business owners) get a clearer, standardized way to attest they understand the risks of private offerings, lowering administrative barriers and making it easier to access private investment opportunities.
The SEC must adopt a short (≤2 page) uniform attestation form within one year, reducing paperwork inconsistency across issuers and simplifying administration for financial institutions and intermediaries.
More retail investors may self-attest and gain access to illiquid, risky private securities, increasing the potential for investor losses and broader taxpayer exposure to investor harm.
Issuers and the SEC could face added compliance, monitoring, and enforcement costs to implement and police the new attestation regime, imposing burdens on financial institutions and potentially on public resources.
Based on analysis of 2 sections of legislative text.
Requires the SEC to adopt a two-page investor attestation form and treat signed attestations as a defined category for private issuer investments, with rules due within one year.
Introduced January 3, 2025 by Warren Davidson · Last progress January 3, 2025
Amends the Securities Act of 1933 to require the SEC to create a standard two-page "investor attestation" form and treat signed attestations as a defined category for individuals who tell an issuer they understand risks of investing in private issuers. The SEC must adopt rules, including the form, within one year of the law taking effect.