Once again, the Securities and Exchange Commission’s Small Business Forum has shared its views on how regulations and rules should be modified to enhance the prospects for smaller firms. This event has been ongoing for 44 years, with a report published following each annual gathering.
This year’s recommendations include significant overlap with those from prior years. While the group’s perspective may hold merit, there is also a long history of inactivity regarding any proposed changes. Fixing the definition of an Accredited Investor or updating how Finders are regulated reappears.
Organized by the SEC’s Office of the Advocate for Small Business Capital Formation, the report includes the top five recommendations regarding Early-Stage Capital Raising, growth-stage companies and smaller funds, and Small Caps and public markets.
As with much of the policy regarding capital formation, there is a struggle between investor protection and streamlined access to money, and you have strong opinions on both sides. Big government types see a need for the Feds to protect the masses from themselves, and pro-business/pro-investor types accept the risk inherent to capitalism and a market economy. As the current administration leans more on the pro-business/pro-investor side, there is a greater chance that some of these recommendations may become reality over the next couple of years.
You may read the 2025 report here.