Lucas Mansberger, senior manager selection analyst and investment strategist at Greenleaf Trust in Kalamazoo, notes the “very strong” divergence in public comments to the SEC between the investment industry and investor advocates and protection organizations.
When people are moving from public to private capital markets that have less oversight, “we view that it’s much more likely that abuses will occur,” Mansberger said.
“Our stance is that we believe investor protections are there for a reason and that in general, the idea of significantly expanding investor access to private alternatives without providing any additional disclosure requirements for private offerings or changing other investor protections in a way that benefits and protects investors is not necessarily a prudent idea,” he said.
Mansberger does agree that an asset or income test “is no guarantee” of an investor’s financial sophistication.
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