Can an Investment Statement be signed electronically?

Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted, provided the signature demonstrates intent, consent, attribution, and retention capability.

When is notarization required?

Notarization is rarely required for a standalone Investment Statement, but local filing requirements, entity authorization documents, or subscription agreements may require notarized signatures—verify with counsel or the receiving party.

What if investor name does not match supporting documents?

Mismatched names commonly delay processing. Provide certified formation documents for entities, amended IDs, or an affidavit of name discrepancy to resolve identity mismatches.

What supporting documents should accompany the statement?

Typical attachments include recent brokerage or bank statements, tax returns, corporate formation documents, and signed subscription agreements to substantiate accreditation and source-of-funds claims.

How long must I retain signed statements?

Retain records at least three years for IRS purposes (IRC §6501(a)); financial firms commonly retain them longer—seven years is typical for post-termination storage in many workflows.

How strong must signer authentication be?

Authentication should match transaction risk. For high-value or accredited investor verifications, use multi-factor authentication or knowledge-based methods; for low-risk statements, an email-based workflow may suffice.

Investment Statement

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Investment Statement

Statement Date:

Parties

Investor Name Investor Entity Type (select all that apply)

Individual Corporation Limited Liability Company

Investor Address Issuer / Company Name Issuer Address

Recitals

WHEREAS, the Issuer is engaged in the business described in its organizational documents and seeks capital to finance its operations and growth; and

WHEREAS, the Investor is willing to invest the principal sum of $ in exchange for the securities described below, on the terms and conditions set forth in this Investment Statement; and

WHEREAS, the parties desire to set forth hereunder their agreement with respect to the investment, the use of proceeds, representations and warranties, and other material terms related to the transaction.

Investment Details

Security Type: Number of Units/Shares: Purchase Price per Unit: $

Anticipated Closing Date:

Scope of Work

Scope of Work (describe use of proceeds, milestones, reporting obligations)

Payment Terms

Total Investment Amount: $

Payment Schedule (detail dates, amounts, and conditions of each tranche)

Late Payment Fee: (applies to any installment or payment not received within five (5) business days of the due date)

Payment Instructions or Escrow Terms

Term and Termination

Effective Date: Termination Date (if any):

Either party may terminate this Investment Statement for material breach by the other party upon written notice and a cure period of days, provided that termination shall not affect obligations accrued prior to the effective date of termination.

Confidentiality

Each party shall keep confidential and shall not disclose to any third party any non-public information received from the other party in connection with this Investment Statement, except as required by applicable law, regulation, or judicial process. Confidential obligations shall survive termination for a period of years.

Representations and Warranties

The Investor represents and warrants that it has the requisite power and authority to enter into this Investment Statement, that the funds invested are not derived from illicit activities, and that the Investor is acquiring the securities for investment and not with a view to distribution.

The Issuer represents and warrants that it has full corporate power and authority to issue the securities described herein, that the issuance will conform to applicable law, and that no consent of any third party is required except as disclosed in writing to the Investor prior to execution.

Governing Law

This Investment Statement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles.

Entire Agreement

This Investment Statement, together with any schedules, exhibits, and executed subscription documents referenced herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements, whether written or oral.

Miscellaneous

If any provision of this Investment Statement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. No amendment to this Investment Statement will be effective unless in writing signed by both parties.

Investor:

By:

Date:

Issuer:

By:

Date:

What an Investment Statement Is and When it’s Used

An Investment Statement is a formal document that summarizes an investor’s assets, holdings, risk profile, and declarations about sources of funds or suitability for a specific investment opportunity. It is used by broker-dealers, registered investment advisors, private placement issuers, and financial institutions to verify investor status, confirm accredited investor criteria, document risk tolerance, and record material disclosures. The statement may accompany subscription agreements, account opening records, or capital call notices and often becomes part of the permanent client file under securities and tax recordkeeping rules.

Why a Clear Investment Statement Matters

A clear Investment Statement reduces compliance risk, supports accurate investor classification, and creates an auditable record for suitability and anti–money laundering checks under federal securities and tax regimes.

Who Prepares and Relies on Investment Statements

Typical preparers and users include financial advisers, compliance officers, fund administrators, accredited investor review teams, and individual investors completing subscription paperwork.

Registered investment advisors and broker-dealers responsible for suitability and Know Your Customer procedures.
Private fund managers and issuers using statements to verify investor accreditation and source-of-funds disclosures.
Individual investors or entities completing subscription or account-setup documents for new investments.

The document is both a compliance artifact and a practical tool for onboarding, investor reporting, and regulatory audits.

Core Sections to Include in a Professional Investment Statement

A professional Investment Statement is organized into consistent sections so reviewers can quickly verify identity, holdings, and accreditation. Standardizing content reduces back-and-forth and supports faster approvals and audits.

Investor Identity

Full legal name, entity type, tax identification number, and government ID references for individuals or organizations.

Contact Information

Primary mailing address, email, daytime phone, and registered agent (for entities) to support notices and KYC.

Asset Summary

High-level list of holdings, account custodians, approximate values, and asset classes to establish net worth and liquidity.

Accreditation Status

Statements and checkboxes showing which accredited investor criteria are met, with supporting documentation referenced.

Source of Funds

Brief description of where investment capital originates, including employment income, sale of assets, inheritance, or business proceeds.

Declarations & Signatures

Legal affirmations, conflict-of-interest disclosures, and signature blocks with date and capacity (e.g., trustee, manager).

Stepwise Process to Complete and Submit an Investment Statement

Follow these steps in order to minimize review cycles and ensure the statement meets compliance checks.

01

Collect identity documents: Obtain government ID and entity formation records.
02

Prepare asset summaries: Compile statements and valuations.
03

Confirm accreditation: Match investor to required criteria and collect proofs.
04

Sign and date: Execute signatures and record signer capacity.

Typical Digital Workflow for an Investment Statement

This workflow shows the common stages when completing an Investment Statement using an electronic process.

Upload Document: Sender uploads the Investment Statement template to the signing platform.
Place Fields: Sender adds required fillable fields, signature, and date elements.
Send to Signer: Signer receives an email or link with authentication steps.
Sign and Store: Signed copy and audit trail are saved to the document repository.

Recommended Configuration for Online Completion

Configure the signing workflow to balance ease of use and authentication strength based on investor risk profile.

Field	Configuration
Authentication level	Email link for low-risk; SMS or knowledge-based verification for accredited investor proof.
Required attachments	Enable mandatory upload fields for recent brokerage statements or tax returns.
Conditional fields	Show additional source-of-funds fields when certain checkboxes are selected.
Retention destination	Store signed files in secure archive with immutable audit trail.

Technical Considerations for eSubmission and eSignatures

Select platform features that meet legal, security, and operational needs for investment documentation.

Document formats: Support for PDF and Word DOCX to preserve formatting across exchanges.
Authentication options: Email, SMS, KBA, and advanced signer verification for high-value transactions.
Integrations: Connectors to CRM and custody systems for automated record updates.

Consider platforms with strong audit trails and compliance certifications to reduce regulatory friction and support audits.

Required Security and Compliance Features for Electronic Investment Statements

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Comprehensive action, timestamp, and IP logging

Access Controls: Role-based permissions and SSO

Compliance: ESIGN and UETA legal framework adherence

Certifications: SOC 2 Type II and ISO 27001 available

HIPAA Support: Business Associate Agreement available when required

Common Mistakes to Avoid When Preparing an Investment Statement

Using informal or abbreviated legal names that do not match ID or formation documents.
Failing to attach required supporting statements or account statements for accreditation.
Entering inconsistent dates leading to ambiguity about the effective period of representations.
Neglecting to record signer capacity when an entity signs, creating questions about authorization.

Consequences of Inaccurate or Incomplete Investment Statements

Securities liability: Misstatements can expose issuers to rescission claims and SEC enforcement actions.

Tax reporting issues: Incorrect TIN or residency data can trigger IRS penalties under IRC §6721.

Delayed funding: Incomplete accreditation proof can delay closings and capital calls.

AML concerns: Insufficient source-of-funds documentation may prompt AML escalations.

Contract challenges: Ambiguous signatory capacity can render agreements voidable by counterparty.

Reputational risk: Repeated errors increase regulatory scrutiny and client friction.

Pricing and Feature Comparison for eSignature Providers

Compare starting price and core capabilities relevant to Investment Statement workflows. signNow is listed first per vendor ordering requirements.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-World Examples of Investment Statement Usage

Practical scenarios illustrate how statements are used across transactions and compliance workflows.

Optica Ventures

A venture fund requires investor statements during onboarding to confirm accreditation

The fund requests two most-recent brokerage statements
Having a standardized statement reduced follow-up requests and accelerated capital calls by reducing verification time.

Martin Properties

A syndicator collects Investment Statements for passive real estate investors

Notarization was required for certain local filings
Using consistent electronic forms with notarization options cut execution time and improved record completeness for closing.

Frequently Asked Questions About Investment Statements

Answers to common questions about completion, legal effect, and electronic submission of Investment Statements.

Need help? Contact support

Can an Investment Statement be signed electronically?
Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted, provided the signature demonstrates intent, consent, attribution, and retention capability.
When is notarization required?
Notarization is rarely required for a standalone Investment Statement, but local filing requirements, entity authorization documents, or subscription agreements may require notarized signatures—verify with counsel or the receiving party.
What if investor name does not match supporting documents?
Mismatched names commonly delay processing. Provide certified formation documents for entities, amended IDs, or an affidavit of name discrepancy to resolve identity mismatches.
What supporting documents should accompany the statement?
Typical attachments include recent brokerage or bank statements, tax returns, corporate formation documents, and signed subscription agreements to substantiate accreditation and source-of-funds claims.
How long must I retain signed statements?
Retain records at least three years for IRS purposes (IRC §6501(a)); financial firms commonly retain them longer—seven years is typical for post-termination storage in many workflows.
How strong must signer authentication be?
Authentication should match transaction risk. For high-value or accredited investor verifications, use multi-factor authentication or knowledge-based methods; for low-risk statements, an email-based workflow may suffice.

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