The U.S. Securities and Exchange Commission is seeking public comment on how to improve the way in which it offers exemptions from registering private investment offerings, the agency said Tuesday.
"We are taking a critical look at our exemptions from registration to ensure that our multifaceted private offering framework works for investors and entrepreneurs alike, no matter where they are located in the United States," SEC Chairman Jay Clayton said in a news release.
"Input from startups, entrepreneurs and investors who have first-hand experience with our framework will be key to our efforts to analyze and improve the complex system we have today," he said.
The SEC is looking into whether it should change the way it provides exemptions for companies and investors — and how to go about making them. It is seeking public comment to determine if the limitations on who can invest in certain exempt offerings or the amount they can invest either provide enough protection to investors or pose an undue burden on capital formation or investor access to investment opportunities.
The SEC also wants to know whether it should facilitate a company's ability to transition from one offering to another or to a registered offering or if it should expand companies' ability to raise capital through pooled investment funds.
Finally, the SEC is seeking comment on whether it should revise its exemptions governing the secondary trading of securities initially issued in exempt offerings.
The period for public comment will remain open for 90 days.