SEC Advisory Committee Recommends New Exchange for Accredited Investors
The SEC Advisory Committee on Small and Emerging Companies has recommended the establishment of a new exchange with access limited solely to accredited investors. The Committee recommends that this new exchange would have lessened disclosure requirements because of the absence of retail investors. The Committee believes that such an exchange would facilitate entrepreneurship and growth, and that current exchanges are not satisfactory for small and emerging companies.
OUR TAKE: This is a bold and innovative concept, and one that fills an obvious gap. Lest you think that this idea has no chance, this is the same committee that recommended the JOBS Act last year.