U.S. Securities and Exchange Commission Commissioner Hester M. Peirce delivered remarks to the Small Business Capital Formation Advisory Committee focused on how regulation can add to or reduce burdens on emerging fund managers and small public companies, and how the Commission could use the committee’s work to identify hurdles that impede capital formation. The remarks highlighted two points in the capital-raising lifecycle: how emerging fund managers and angel investors find each other and build relationships, particularly where parties lack pre-existing personal networks, and how small public companies assess access to capital alongside the cost of regulatory compliance. Peirce posed questions on the biggest impediments or market conditions deterring private companies from entering public markets, the most pronounced costs for newly public companies and how the Commission could mitigate necessary costs and eliminate costs without investor-protection benefits, and potential changes to ease burdens on smaller public companies and those not listed on a national exchange. Peirce indicated that recommendations emerging from the committee’s discussion could inform the Commission’s identification and prioritisation of regulatory hurdles affecting going and staying public.
U.S. Securities & Exchange Commission 2025-02-25
U.S. Securities and Exchange Commission Commissioner Peirce urges the Small Business Capital Formation Advisory Committee to identify regulatory hurdles for emerging fund managers and small public companies
SEC Commissioner Hester M. Peirce addressed the Small Business Capital Formation Advisory Committee on regulatory impacts on emerging fund managers and small public companies. She discussed capital-raising challenges, especially for those lacking networks, and regulatory compliance costs for small public companies. Peirce suggested committee recommendations could guide the Commission in identifying and prioritizing regulatory hurdles for public market entry and retention.