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Summary

In an October 1, 2019, letter to the Securities and Exchange Commission (SEC), Barbara Roper, Director of Investor Protection at the Consumer Federation of America (CFA), expressed strong opposition to the SEC’s proposed amendments aimed at expanding exemptions from securities registration requirements. Roper argued that these changes would significantly broaden the use of private offering exemptions, undermining investor protection and the integrity of public markets. She criticized the SEC for proceeding without comprehensive analysis of the potential impacts on investors and market health, suggesting that the proposal was ideologically driven rather than based on solid economic evidence.

Roper highlighted concerns that the proposal would erode the distinctions between public and private markets, making it easier for companies to raise unlimited capital privately without adequate regulatory oversight or accountability. This shift, she warned, could lead to a decline in public market vitality, reducing transparency and protections for investors. She urged the SEC to halt the proposed amendments until a thorough analysis could be conducted to assess their effects on investor protection and the overall health of capital markets.

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