Have the SEC authorize a new SRO dedicated to small business

Small and medium sized enterprises (SMEs) currently face federal and state securities regulations that not only make it difficult to raise money, but in fact often outright interfere with that objective. That is why one of the most popular ideas presented on this website concerns "crowd funding", the most commonly raised issue at the Roundtable I attended in Palo Alto. The need for a crowd funding like solution is symptomatic of a larger problem with the current securities regulatory environment, which negatively impacts SMEs. The SEC and FINRA are predominantly Wall Street centric and are often non-responsive to the needs of the SME community. This SME community needs a regulatory organization that is dedicated to its needs, that understands its needs and can craft a whole set of solutions to fit those needs, all of which goes well beyond just crowd funding. The best way to do that is through the creation of a new SEC authorized SRO (self-regulatory organization like FINRA) who is responsible for oversight of the securities industry related exclusively to the small business community. This new SRO should be formed by the SME community itself, perhaps in conjunction with Startup America Partnership. For more background, see the problems with the current regulatory environment that are explored in depth here: The need for a new SRO is described in the first article on that page and detailed here:


32 votes
Idea No. 200