Acting SEC Chairman Calls For Expanding Participation In Private Placements


In his opening remarks at the “SEC Speaks” Conference last week, Acting SEC chairman Michael Piwowar called for allowing ordinary investors to buy unregistered securities. The theme of Piwowar’s remarks was“Remembering the Forgotten Investor” or as Piwowar says “the men and women of our country whom securities regulation is meant to serve and protect but so often has not“.

Piwowar said that the restrictions on who can participate in private placements (accredited investors) limits the returns and portfolio diversification of investors who are not defined as “accredited.”

In my view, there is a glaring need to move beyond the artificial distinction between ‘accredited’ and ‘non-accredited’ investors,” Piwowar said. “I question the notion that non-accredited investors are truly protected by regulations that prevent them from investing in high-risk, high-return securities available only to the Davos jet-set.

Prohibiting non-accredited investors from investing in high-risk securities amounts to a blanket prohibition on their earning the very highest expected returns,” Piwowar said. 

Read Piwowar’s full remarks from the “SEC Speaks” Conference HERE


Michael Piwowar

Securities and Exchange Commission

accredited investors

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