Mar. 17, 2023
To the SEC, I am a small-time household investor. I am submitting this comment on the proposed rule # S7-01-23, "Prohibition against Conflicts of Interest in Certain Securitizations". The proposed rule exempts non-reporting companies from registering certain securities offerings under the Securities Act if they are exclusively sold to accredited investors. My first and honestly only question is why does this exemption exist? Because it feels like another hose being clamped off to information that makes and keeps (in theory……) the Markets fair and equal for all. (Not going to lie struggled to say that “fair and equal for all” part with a straight face probably as much as the person reading this Is currently.) This lack of transparency makes it harder for the common citizen (not that we matter) to make informed investment decisions. Not to mention the proposed rule could be exploited by manipulative hedge funds. These funds have a history of manipulative behavior in the securities market (I shouldn’t need to tell you guys this but, here we are ) ,and the exemption would offer them a new opportunity to engage in such practices. (because apparently the one thing healthy hedge funds need are more loopholes) By limiting the exemption to accredited investors, hedge funds could create fake “accredited” accounts to conduct manipulative behavior outside of regulatory oversight. Bottom line- The SEC should not claim to be champions of “Fairness and Transparency” in the markets while painting the windows black and adding a 10-digit cover charge for entry. I now yield the remainder of my time…or however this works… I’m new here. Thank You, Concerned Citizen