August 21, 2013
Being both an entrepreneur as well as a professional at a Wall Street bank, I think I can understand the SEC intentions with the new proposal, and that it falls flat in achieving them.
Start-ups don't have the time and/or money to follow strict bureaucratic processes, as is demanded by the SEC on financial institutions or the Feds on banks. Startups must be allowed maximum freedom to innovate and ultimately create jobs (not legal jobs at SEC), and especially not be penalized a whole year for inability to follow procedures foreign to most of them. 3 months is more than plenty if SEC needs a throttle.
If SEC truly want this to succeed, reduce the red tape, provide standard forms, an advisory group that are available to answer questions and provide feedback on filing material before submission.
Otherwise, I think these changes will actually hurt start-up companies and not benefit them.
Thank you for your considerations.