June 1, 2011
Certainly no one can argue with the intent to protect the investor. However, remember that by passing increasingly onerous restrictions on doing business between two willing parties, you are also CRUSHING JOBS AND RESTRICTING INDIVIDUAL LIBERTIES. Think more carefully about the issue. All you are doing in actuality is preventing the individual of normal financial means from accessing some of the best and most capable managers. In addition, since these superior managers are no longer available to the person of average financial means, then this bill is a defacto subsidy of inferior products such as index funds, etc. The individual is left with fewer choices that do not appeal to him or her.
This is an issue of individual liberty and job creation. We are all concerned about fraud. But remember, there are already countless laws on the books to protect against it. That is the stated purpose of the courts. Let the individual investor and the manager make their own agreements between themselves as they see fit. Stop meddling in people's lives We are sick of it. Let the individual investor learn how to perform due diligence, and to ask the questions they deem pertinent. Stay out of our financial lives. A better alternative than this onerous job crushing bill would be to completely remove ANY restriction or qualification to invest. My money is my business, not yours.