# Plain Language Summary: Risk Disclosure and Investor Attestation Act

This bill makes it easier for regular people to invest money in private companies by removing some of the current restrictions. Right now, federal law limits who can invest in private businesses—generally only wealthy or sophisticated investors are allowed to put money into startups and private companies. This bill would change that by letting any individual invest in a private company as long as they sign a form acknowledging that they understand the risks involved.

The key requirement is simple: before you invest in a private company, you'd need to attest (basically sign off) that you understand investing in private businesses is risky. The government would create a standardized form for this—and importantly, it can't be longer than two pages. This form would be your way of saying "I know what I'm getting into." Once you've signed it, you'd be allowed to invest in that private company without needing to meet any income or wealth requirements.

The practical effect is that this opens up private investment opportunities to everyday Americans, not just the wealthy. If you wanted to invest in a friend's startup or a local business, you could do so without having to prove you're a "accredited investor" (the current requirement). However, this also means less government protection—the SEC isn't doing background checks or verifying that the company is legitimate. You're taking on more responsibility to research the investment yourself. The bill gives the Securities and Exchange Commission one year to write the actual rules and create that two-page form that investors would need to sign.

Risk Disclosure and Investor Attestation Act

Davidson, Warren

Risk Disclosure and Investor Attestation ActThis 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.