Today, FreedomWorks Foundation’s Regulatory Action Center submitted a comment in the Securities and Exchange Commission’s proceeding entitled “Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews.” In the comment, which is attached below, the RAC makes the following points:
- This latest SEC proposal represents another attempt to legislate through regulation, pushing by executive fiat numerous Biden administration proposals that are stalled in Congress.
- The Biden SEC is actively promoting Sen. Elizabeth Warren’s (D-MA) agenda of blurring the lines between public and private companies to enable private companies to be bullied into adopting the Left’s “woke” ESG agenda and increasing the power of the federal government at the expense of the free market.
- If adopted as proposed, the SEC rule would subject private equity to many of the same onerous requirements as public equity. This is a dramatic leap in the SEC’s mission, which is to protect small “mom and pop” investors. Private equity investors are wealthy individuals and pension funds who can fend for themselves and do not need the government’s protection–but public pension funds, which are notoriously mismanaged, want the government to dictate favorable investment terms for them.
- The SEC rule would divert private capital from funding innovative businesses to complying with government red tape. This will result in fewer start-up companies being funded, hurting American competitiveness and depriving the world of potentially game-changing innovations. Evidently, doing the unions’ bidding is more important to the Biden Administration than promoting job creation and economic growth.