The SEC’s Small Business Capital Formation Advisory Committee will discuss the definition of accredited investor and diversity in the investment process when it meets Wednesday.
The committee, which provides advice and recommendations to the SEC in regard to small businesses and rules, regulations and policy matters, is scheduled to meet from 10 a.m. to 3 p.m. on Nov. 29. The public will be able to watch a live stream of the meeting at www.sec.gov.
Committee members said the morning session will be used to discuss the accredited investor definition. Members will share their views on and experiences with the existing definition as well as discuss potential changes to the definition.
In the afternoon, the Committee will discuss the merits of and uses of diversity metrics by investors, including existing practices and voluntary disclosures. Anna Snider, head of investment selection and chief investment officer at Bank of America, will share information on the role of diversity metrics and how they are incorporated into the investment process. Additionally, committee members will explore how disclosure is used and what voluntary diversity disclosures are designed to achieve, while looking into potential impacts and limitations brought on by the existing regulatory framework and current legal challenges.
Committee members will also hear from Kenisha Nicholson, SEC’s Division of Corporation Finance’s Office of Small Business Policy about how that office fits into the SEC’s mission, as well as how the accredited investor definition relates to capital-raising rules. And Marc Mehrespand of the SEC’s Division of Investment Management will Present information on his office’s role in the SEC’s mission, as well as background on the regulatory and disclosure framework for investment advisors.