Mar. 24, 2023
Hello,
I wish to express my concerns about the proposed rule to implement Section 27B of the Securities Act of 1933, a provision added by Section 621 of the Dodd-Frank Act. After a thorough review of the proposed rule, I believe that it will negatively impact individual investors and leave room for manipulative hedge funds to do as they please.
I flat out reject the idea that we should allow any exceptions for "risk-mitigating hedging activities, bona fide market making & certain liquidity commitments". Corrupt Hedge funds & Market Makers have used such ‘privileged’ positions to abuse the US stock market long enough, and consequently drive the American economy into ruin. More than once, I’ll add.
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.
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.
Please take these points into consideration and do pass this rule with extreme prejudice.
Thanks,
Vivek Wilson
A very concerned Retail Investor.