SEC Small Business Advocate Act Signed Into Law
Many in the microcap space feel that the SEC has too many rules are designed to address larger firms but end up harming smaller firms that are ill-equipped to manage excessive regulatory demands.
The Act will create a new office within the SEC for an individual tasked with protecting and promoting the interests of small business and establishes the Small Business Capital Formation Advisory Committee.
According to CrowdFundInsider.com, the SEC Small Business Advocate will;
-assist small businesses and small business investors in resolving significant problems they may have with the SEC or with self-regulatory organizations;
-identify areas in which such businesses and investors would benefit from changes in SEC regulations or the rules of such organizations;
-identify problems that small businesses have with securing access to capital, including any unique challenges to minority-owned and women-owned small businesses;
-analyze the potential impact on such businesses and investors of proposed SEC regulations and proposed rules that are likely to have a significant economic impact on small businesses and small business capital formation;
-conduct outreach to such businesses and investors to solicit views on relevant capital formation issues;
-propose to the SEC changes in its regulations or orders, and propose to Congress legislative,
-administrative, or personnel changes, to mitigate problems identified and to promote the interests of such businesses and investors;
-consult with the Investor Advocate on such proposals and advise the Investor Advocate on small business-related issues;
-submit annual reports on its activities to specified congressional committees; and
-be responsible for planning, organizing, and executing the annual Government-Business Forum on Small Business Capital Formation.
The Small Business Capital Formation Advisory Committee will provide the SEC with advice on SEC rules, regulations, and policies regarding its mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation, as they relate to:
1. capital raising by emerging, privately held small businesses and publicly traded companies with less than $250 million in public market capitalization through securities offerings;
2. trading in the securities of such businesses and companies; and
3. public reporting and corporate governance requirements of such businesses and companies.
Learn more about the SEC Small Business Advocate Act HERE.