“It can be a powerful force for investors,” she said.
Stein said that while the JOBS Act rules have opened the door to mass advertising of hedge funds and other private offerings, it is important that those investment vehicles are only sold to accredited investors who can truly bear the risks.
Speaking to the technology glitches that have roiled the markets, the commissioner said investors need to know a computer error won’t wipe out their retirement accounts.
Recently departed SEC Republican Commissioner Troy Parades told the gathering that interpretive guidance by SEC divisions is not a perfect substitute for rule-making by commissioners because guidance doesn’t have the benefit of public comment before the directives are issued.