Private Offering Disclosures Need Fresh SEC Look, Crenshaw Says (1)

Democratic SEC Commissioner Caroline Crenshaw is raising concerns the agency’s private offering rules for small startups provide insufficient disclosures to investors.

Retail investors, in particular, may lack the information they need to make sound financial decisions about companies that use the Securities and Exchange Commission’s Regulation A or Regulation Crowdfunding to secure capital, Crenshaw said Tuesday.

The rules cover companies looking to raise less than $75 million in a 12-month period, requiring them to make fewer disclosures than in initial public offerings.

Testing investors on the private offering disclosures could help the SEC assess any problems they may have with ...