Mar. 15, 2023
March 15, 2023 I am a Household Investor, and I am submitting this comment on the proposed rule # S7-01-23, \"Prohibition against Conflicts of Interest in Certain Securitizations\". The proposed rule exempts non-reporting companies from registering certain securities offerings under the Securities Act, if they are exclusively sold to accredited investors. This exemption has significant flaws. The proposed rule lacks protection for household investors by reducing the information available to them. This lack of transparency makes it difficult for household investors to make informed decisions. Plus, as it is written, the proposed rule could be exploited by bad actors in the marketplace (hedge funds, market makers, etc) A lot of these firms have a history of manipulative behavior in the securities market (this can easily be seen by looking up fines on your very own website). There is no shortage of firms being fined for misleading or straight up stealing from investors (household or otherwise). The exemption would offer them opportunity to engage in such practices legally. By limiting the exemption to accredited investors, hedge funds could create fake accredited investor accounts to conduct manipulative behavior outside of regulatory oversight. If the SEC is trying to make markets fair and transparent, there needs to be NO EXEMPTIONS to the rules for any market participants. We should stand together as a country and have confidence in the markets we chose to invest in. Thank You.