The latest meeting of the Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee was held this week, the commission announced.
The committee, which meets quarterly, was established by the SEC Small Business Advocate Act of 2016. It is designed to provide a formal mechanism for the agency to receive advice and recommendations on SEC rules, regulations and policy matters relating to small businesses, including smaller public companies.
According to the agenda released by the SEC last week, the morning session of the meeting was devoted to a discussion of the accredited investor definition. Members of the committee were slated to share their views and experiences regarding the existing definition and discuss potential changes that could positively affect capital-raising opportunities for both entrepreneurs and investors. The session included remarks from Kenisha Nicholson of the SEC’s Division of Corporation Finance’s Office of Small Business Policy on the office’s role in the SEC’s mission.
The afternoon session focused on diversity and the investment process. It included discussions on the merits and use cases of diversity metrics by investors, including existing practices and voluntary disclosure. Invited as the speaker was Anna Snider, Head of Investment Selection, Chief Investment Office, Global Wealth and Investment Management for Bank of America. The SEC said the session would “discuss the role of disclosure and what varying diversity disclosures may be designed to achieve and explore their potential impacts and limitations in light of both the existing regulatory framework and current related legal challenges.”
Members of the public had the opportunity to watch the live meeting via webcast on www.sec.gov.
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