Subject: Prohibition Against Conflicts of Interest in Certain Securitizations File No. S7-01-23
From: Dave W.
Affiliation:

Mar. 15, 2023

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.