Political Quotes

“Mr. Speaker, in both this Congress and last, I have been particularly outspoken about the risks of retail investors investing in private securities. Amongst other things, private securities lack sufficient transparency, have longer lock-up periods, and are much more volatile and less liquid than their public counterparts. It is critical that anyone who invests in these risky assets have sufficient knowledge of those risks. Currently, companies, or the brokers they hire, can only solicit these "investment opportunities" to individuals who have been deemed to be accredited investors. This definition is currently based on a person's income and net worth, meaning only those making a certain amount of money or possessing a big enough bank account have access to them. Anyone can tell you that just because you have a lot of money, that doesn't make you knowledgeable about the markets. Knowledge is the key here, and the definition needs to be revised to center around this core concept of knowledge and expertise. The committee has heard from investors who want to invest their own money in some of these risky and illiquid investments and don't want to be barred from investing just because they don't meet the wealth or income tests.”