Mar. 15, 2023
The proposed rule exempts non-reporting companies from registering certain securities offerings under the Securities Act, if they are exclusively sold to accredited investors. However, this exemption has significant flaws: The proposed rule inadequately protects household investors by reducing the information available to them. This lack of transparency makes it harder for them to make informed investment decisions, potentially leading to losses. Additionally, as it is written, the proposed rule could be exploited by manipulative hedge funds. These funds have a history of manipulative behavior in the securities market, and the exemption would offer them a new opportunity to engage in such practices. By limiting the exemption to accredited investors, hedge funds could create fake accredited investor accounts to conduct manipulative behavior outside of regulatory oversight. In summary - If the SEC is trying to make markets fair and transparent, there needs to be NO EXEMPTIONS to the rules for any market participants. Also please enforce failure to deliver rules. The market doesn't seem to be a fair and even ground between retail/household investors and hedge funds who front run our trades and don't play by the rules and instead make new ones as they go. Thank You, Kendrick Lin