The Securities and Exchange Commission has proposed sweeping changes to the regulatory framework for exempt securities offerings. CFA submitted a comment letter urging the Commission to withdraw its proposal on the grounds that it would harm investors and undermine the health of the public securities markets without achieving its stated goal of promoting capital formation. The CFA letter criticizes the Commission for failing to conduct an even minimally acceptable economic analysis in support of its deregulatory agenda.

“This proposal is evidence of an agency that has abandoned its investor protection mission and shirked its responsibility to protect the health and integrity of our capital markets. It should be withdrawn and the Commission should recommit itself to what it claims is its primary goal, to ‘promote a market environment that is worthy of the public's trust,’” the letter states.