Jan. 12, 2024
To all involved at the SEC: I am urging the SEC to NOT allow the NYSE to list “Natural Asset Companies” or NACs, pursuant to File No. SR-NYSE-2023-09. Ground rules, which cannot and must not be manipulated to keep the playing field level and fair and to engender positive outcomes is needed. The continued efforts to financialize productive natural resources to subvert the legal system, to pervert the capital markets, and to cause harmful outcomes for both investors and the US alike “cannot” be enabled. I am a small farm owner and it is clear that from an investor protection perspective, NACs bastardize the capital markets for a political objective. NACs are not only a “new type of company”, something that is highly irregular and should require much scrutiny, but also have employed their own type of accounting system. This comes directly from the creator of the “NACs”, IEG’s Chairman & CEO, who said has said, “We created a new accounting system, which we called “Statements of Ecological Performance” (?!) which account for the flow of ecosystem services in financial terms.” (Source: https://protect2.fireeye.com/v1/url?k=31323334-50bba2bf-3132d782-4544474f5631-754a83662327bd96&q=1&e=172b7ad9-c45e-4d79-afa6-948b15213718&u=http%3A%2F%2Finvestinginregenerativeagriculture.com%2F2022%2F11%2F29%2Fdou…). Even if they use GAAP accounting within NAC financial reporting, their hubris that there is some separate accounting measures to be used within the financial markets raises “too many red flags to count” and should be immediately disqualifying. NACs seek to use others’ money, including that obtained via the capital markets, to buy the ability to control or “manage” productive public and private land and other natural resources. Their stated purpose in doing so is not to make a profit or to be productive, but rather to protect, conserve, restore and preserve these natural “assets”, based on whatever their own definitions of those activities are. - Meaning they seek to control the liberty and freedom that our forefathers fought for! As you well know, there is a very clear reason that a company goes public. It is to broadly access capital to provide both funding for growth and liquidity for existing investors, providing opportunities for investors to participate in future growth for the risk they take on. Companies are supposed to have strong merits and provide a path to growth for public investors in exchange. It is a rigorous and costly process both to become public and to stay public, and it is not for every business. These NACs are a bastardization of that purpose. They aren’t seeking to manage resources to improve their earnings potential, rather they would often be seeking to remove the productivity of assets in the name of some type of climate justice. The focus on the SEC is protecting investors. NACs allow investor money, particularly those deployed through entities that they may not control, such as pension funds, for example, to be used to decommission resources and make them non-productive for political means. Americans and the SEC cannot allow that to happen. We cannot afford to allow sticky fingers into hard earned pension funds of our blue-collared workers! They are suffering with the results of inflation as it is! If you have any questions on whether this is a political tool meant to subvert the legal process, read the words of IEG’s Chairman, who said, “We were looking for a private-sector approach that wasn’t dependent on policy, it wasn’t dependent on traditional taxes, regulation or philanthropy to price in these assets and give investors the opportunity to invest directly in nature, whether that’s for climate or biodiversity.” (Source: https://protect2.fireeye.com/v1/url?k=31323334-50bba2bf-3132d782-4544474f5631-c88cdbbb0a68466b&q=1&e=172b7ad9-c45e-4d79-afa6-948b15213718&u=http%3A%2F%2Feenews.net%2Farticles%2Finves…). The bad outcomes here will include the subjugation of the fiduciary duty to do what is in the best interest of investors. Critical natural resources will be subject to the consolidation of a handful of wealthy and powerful individuals. And, even more frightening, control of productive resources- as well as our food supply, water, energy, tourism and more- could end up in the hands of foreign nations and their sovereign wealth funds or other bad actors. The SEC is supposed to be a counterbalance to make sure the markets are “free and fair for everyone” and have the interests of all investors at heart. Please do the right thing, and not that which is politically-pushed and elite power-driven; do not allow NACs to access our capital markets via NYSE listings or otherwise. Thank you for your consideration. We remain loyal Americans, Larry and Diane Cleveland Aiken, SC