43rd Annual Rocky Mountain Securities Conference Coverage: Investor Advocacy, Capital Formation and Small Business Development: A Regulatory Approach

The first presentation of the 43^rd Annual Rocky Mountain Securities Conference was a presentation by Commissioner Troy Paredes of the Securities and Exchange Commission.  Mr. Paredes spoke at length about current and potential changes in the regulatory framework and how the Commission views these changes and how the Commission is allocating its resources.

Mr. Paredes indicated the Commission is committed to better use of its resources and rewarding companies and individuals who cooperate with investigations and tips on wrongdoing. The Commission intends to allocate resources in such a way as to ensure the most effective prevention and enforcement measures. The commissioner also explained that the SEC intends to balance higher standards for larger firms with the availability of greater investment options for investors. The Commissioner highlighted potential regulation changes concerning the limit of shareholders, such as new public reporting standards, accredited investor standards, and prohibitions on the advertising of offerings. He explained that since it is the Commission’s responsibility to protect investors, it is important not to promote regulations that hinder capital raising since the more options investors and companies have, the more effective the market. 

Commissioner Paredes also discussed the implications of the current Dodd-Frank legislation. The SEC is facing a number of decisions concerning rulemaking under the Act.  The Commissioner emphasized that the most important consideration is to ensure there are no unrealized long term consequences and therefore the Commission is not going to rush the rulemaking process. He also stressed the importance of not allowing current rulemaking to stifle U.S. corporate competitiveness in international markets.