“… broadening the accredited investor pool could help minority founders who may not have wealthy networks but could benefit from smaller investments from a more extensive base of contributors.”
In a recent episode of Capital Ideas, hosts Nick Morgan and Dara Albright welcomed Jasmin Sethi, a lawyer, economist, and advocate for financial literacy and empowerment, to discuss her work in promoting financial access.
With over a decade of experience in the financial industry and a position on the SEC’s Small Business Capital Formation Advisory Committee (SBCFAC), Sethi shared insights from her personal background and professional journey, emphasizing the importance of financial education and the need for broader access to investment opportunities.
Sethi began by detailing her personal journey, which shaped her passion for financial literacy. Born into a South Asian immigrant family, Sethi grew up facing significant financial challenges, especially after the loss of her father when she was young.
Raised by a widowed mother who struggled with debt and lacked financial literacy, Sethi witnessed firsthand the consequences of poor financial decisions. Her family, for instance, invested in a summer home property that turned out to be swamp land rather than focusing on building wealth through more stable avenues like the stock market.
These early experiences ignited her interest in financial security, wealth accumulation, and the inequalities surrounding access to financial resources.
Sethi credits her mother’s emphasis on education as the driving force behind her and her sister’s success.
Describing her upbringing under an “Asian Dragon mother,” Sethi highlighted how education became the family’s version of a trust fund, allowing her and her sister to overcome their financial hardships.
Sethi herself pursued both a law degree and a Ph.D. in economics, credentials she uses to advocate for financial literacy and empowerment, particularly for underserved communities.
Throughout her career, Sethi has worked in both the public and private sectors, including at the SEC and in asset management, before starting her own business.
She defines financial empowerment as more than just providing information—it requires making financial processes easier and more accessible to individuals.
In today’s world, where information overload is a real challenge, Sethi advocates for practical solutions such as creating user-friendly platforms and even gamifying financial education to engage more people.
Sethi stressed the need for early financial education, starting as early as middle school, where students should learn the basics of budgeting, income, expenses, and eventually investing. She noted that while some states have introduced financial education requirements in schools, there is no standardized curriculum.
Sethi believes that establishing a unified set of best practices could ensure that all students graduate with essential financial knowledge, including investing, taxes, and savings.
The conversation also touched on the two distinct financial worlds that exist in the U.S.: those who have access to a 401(k) and those who do not.
Sethi highlighted the disparities between these groups, with a focus on helping individuals without access to employer-sponsored retirement plans. She mentioned her work on developing a curriculum aimed at educating this demographic, which would include interactive exercises and connections to existing investment platforms.
As a member of the SEC’s Small Business Capital Formation Advisory Committee, Sethi also discussed her work on broadening access to capital for small businesses.
The committee advises the SEC on how its policies impact small businesses, often recommending ways to make capital more accessible.
One key issue the committee has tackled is the definition of an accredited investor, which can limit small businesses’ ability to raise funds. Sethi pointed out that broadening the accredited investor pool could help minority founders who may not have wealthy networks but could benefit from smaller investments from a more extensive base of contributors.
Sethi also highlighted the positive impact of crowdfunding, noting that the SEC’s own reports show that crowdfunding has been instrumental in providing capital to diverse founders. She emphasized the need to remove barriers, such as requirements for audited financials, which can hinder small businesses from accessing crowdfunding opportunities.
Jasmin Sethi’s work and advocacy focus on leveling the playing field for individuals and businesses alike, ensuring that financial education and investment opportunities are accessible to all, regardless of their socioeconomic background.
Nick Morgan is President and Founder of ICAN, the Investor Choice Advocates Network, a nonprofit public interest litigation organization dedicated to serving as a legal advocate and voice for everyday investors and entrepreneurs. He was previously a partner in the Investigations and White Collar Defense Group at the law firm Paul Hastings. Morgan also previously served as Senior Trial Counsel in the SEC’s Division of Enforcement.