Risk Disclosure and Investor Attestation Act

Subjects: Finance and Financial Sector

Summary:  <p><strong>Accredited Investor Self-Certification Act </strong></p> <p>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. </p> <p>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. </p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1574 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 1574

 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

                             March 14, 2023

 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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