Tag: SEC

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paternalism too much government

Save Me, Good and Hard

SEC, Security and Exchange Commission,

The problem with making my own decisions? I might make a mistake.

That’s not good for me, is it?

So what you government boys ought to do is make me scrape and bow and beg for permission. Make me fill out more forms, struggle with invasive new privacy-​invading requirements. Make it super-​hard to comply — so I give up before I do anything … ill-considered.

That way, you prevent me from taking actions that might just possibly go badly — like investing my own hard-​earned money the way I want to.

The SEC is seriously considering meeting this demand. 

Give it to me good and hard, SEC! 

But let me clarify. By “me” I mean every small independent investor. By “give it to me” I mean “don’t give it to me.”

Don’t do what Securities and Exchange Commission Chairman Jay Clayton and other SEC commissioners are considering: imposing a regulation to “effectively ban many middle-​class investors from buying mutual funds and exchange-​traded funds.”

Don’t make it lots harder to use the Robinhood app to make certain low-​fee or no-​fee purchases. Don’t prevent investors from buying funds through discount brokerages and apps like Robinhood unless they first fill out an intrusive questionnaire about their personal finances and pray for permission.

Don’t make us beg to invest.

Don’t. 

Stop mulling whether to further harass Americans who want to be free to make their own choices and live their own lives. 

Don’t enslave. 

Liberate. Laissez nous faire, you condescending thugs.

This Common Sense. I’m Paul Jacob.

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SEC, Security and Exchange Commission,

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First Amendment rights free trade & free markets too much government

Unfree Financial Speech

Can you get in trouble with the law — or at least a government agency’s unlimited regulatory power — for peacefully telling the truth?

You can, despite the protections articulated in the First Amendment and the greater respect sometimes accorded to freedom of speech than to other constitutionally protected rights.

It is possible because when they assault speech, government officials claim to be opposed not to the right to speak freely but to something else. They say they’re combating lung cancer, the influence of money on politics, or the unequal distribution of information to investors.

This summer, Reed Hastings of Netflix committed the sin of boasting on Facebook that monthly viewing of Nexvids “exceeded one billion hours for the first time ever in June.” Sounds innocent enough.

Come December, though, and the Securities and Exchange Commission has threatened to bring civil charges against Netflix for allegedly violating “public disclosure rules.” SEC Regulation FD requires public companies to make “full and fair disclosure” of “material” information that is not already public.

The SEC still thinks that 244,000 Facebook subscribers don’t fully and fairly constitute the public, but the communication cannot by any reasonable, modern construal be a case of offering “insider information.” How much more “outside” from the back rooms of a corporation can you get than Facebook?

The absurdity, here, lies in the SEC’s rules and its interpretations of those rules — and in the blind, confused, bankrupt way bureaucracies, which don’t go bust as the companies they oversee can, enforce their rules.

That is why Bernie Madoff slipped through the SEC’s fingers for years, while Netflix finds itself in hot water for a Facebook posting.

This is Common Sense. I’m Paul Jacob.