The SEC Small Business Capital Formation Advisory Committee Meeting (SBCFAC) has scheduled its next meeting for November 13th.
While no agenda has been made available, one probable topic is the recent publication of the SEC’s Small Business Forum Report. The recommendations provided to the Commission were distilled following a series of forums organized by the SEC’s Office of the Advocate for Small Business Capital Formation.
The report outlined a litany of common-sense recommendations for the Commission to pursue to help smaller firms access capital while benefiting retail investors. You may access the report here, but top items include the democratization of the definition of an Accredited Investor, clarity on Finders, and better access to VC funds while reducing the regulatory environment for firms. While the Commission is required to review the SBCFAC’s advice, there is no requirement to act upon these policy changes.
This past July, the Committee advised the Commission to update the burden for issuers using the Reg CF exemption to make it easier for early-stage firms to raise money. The SEC has yet to act on this recommendation.
Under current leadership, the SEC has sought to pursue more political goals, ignoring a key mandate of supporting access to capital, leading at least one insider to describe the Commission as anti-capital Formation.
