Mar. 15, 2023
March 15, 2023 Dear Sir/Madam, I am a household investor writing to provide my feedback on the proposed rule S7-01-23, \"Prohibition against Conflicts of Interest in Certain Securitizations\". While the proposed rule aims to exempt non-reporting companies from registering certain securities offerings under the Securities Act, provided they are exclusively sold to accredited investors, I believe this exemption has some significant drawbacks. One of the key issues with this proposal is that it may limit the information available to household investors, which could make it difficult for them to make informed investment decisions. This lack of transparency could also potentially result in losses for these investors. Additionally, there is a risk that manipulative hedge funds could take advantage of this exemption to engage in illicit behavior in the securities market. Given the history of manipulative behavior among certain hedge funds, this exemption could offer them a new opportunity to engage in such practices. To make matters worse, the proposed rule's restriction to accredited investors only could also open up the possibility for hedge funds to create fake accredited investor accounts, thereby circumventing regulatory oversight. In light of these concerns, I strongly believe that the SEC should consider a NO-EXEMPTION policy for all market participants if it truly seeks to promote fair and transparent markets. Thank you for your consideration. Sincerely, Anonymous