The Securities and Exchange Commission recently published its report on the Government-Business Forum on Small Business Capital Formation, which generates recommendations from participants that the SEC considers.  The recommendations from participants included, among others, the following:

• Expand the accredited investor definition to achieve greater diversity among startup investors and entrepreneurs,
• Expand the accredited investor definition to include additional measures of sophistication,
• Harmonize the annual reporting requirements for issuers that utilize different exempt offering alternatives, like Regulation A and Regulation Crowdfunding,
• Collaborate with market experts to establish a regulatory framework for finders that includes an exemption from broker-dealer registration and helps facilitate small business capital formation,
• Allow non-accredited investors to participate in venture capital funds,
• Increase the number of investors allowed in 3(c)(1) funds, and
• Improve public trading for small companies by requiring more disclosures about short selling, institutional holdings, insider and affiliate holdings and transactions, etc.

The full report is available here.

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