FINRA stated that marketing materials should reflect the fact that many private placements are either illiquid or speculative in nature, and should "balance claims of these investments' benefits by disclosing these risks."
The Investment Adviser Association and North American Administrators Securities Association offered opposing recommendations to the SEC on its proposal to amend the definitions of "accredited investor" and "qualified institutional buyer."
SEC Chair Jay Clayton urged the Small Business Capital Formation Advisory Committee to consider ways to facilitate opportunities for "Main Street" investors and to support small businesses through private placements.
The SEC issued a concept release reviewing the framework for exempt offerings, particularly as to private placements. The agency is requesting public comment on ways to simplify, harmonize and improve that framework.
SEC Director of the Office of the Advocate for Small Business Capital Formation Martha Miller explained that the purpose of the newly established office is to help small businesses and their investors access capital.
SIFMA and the Security Traders Association raised concerns about legislative proposals on capital formation and corporate governance currently under consideration by the U.S. Senate Committee on Banking, Housing and Urban Affairs.
SEC Chair Jay Clayton outlined progress made on the agency's 2018 rulemaking agenda, key initiatives planned for 2019 including review of the proxy process, and risks associated with Brexit, the LIBOR transition and cybersecurity.