Q: Hi, Andy. Is it true that the SEC wants to give retail investors more access to private markets? I mean, it sounds good. Could you tell me what that could mean for me?

A: Great question. This is a pet peeve of mine. The SEC has opened up private pre-IPO investing only a crack in recent years, and there it still stands!

Okay, first, a little dollop of history…

The SEC created equity crowdfunding rules to give retail investors access to private markets because it had no choice. The JOBS Act of 2012 mandated it. Of course, it took the SEC a mind-numbing four-plus years to issue the enabling rules.

The Regulation A+ rules were issued a year earlier, making the SEC’s procrastination on crowdfunding slightly more forgivable.

But the equity crowdfunding rules the SEC issued have three big problems.

First, they have a low maximum for how much money a company can raise. It’s only $1 million (Reg. A+ has a $50 million limit).

One million dollars doesn’t go very far these days. Crowdfunding is most effective when done in combination with raising capital from venture capital firms. But many companies take the attitude of “If I’m going to spend a lot of time drumming up support from VC sources, why bother with crowdfunding?”

The second problem: Attorney fees, accountant fees, portal fees and others. They add up.

And the third problem? Access. Companies trying to raise money are hard to discover. Their pitches to investors are dispersed across more than a half-dozen portals that specialize in listing crowdfunding companies. Keeping up with new listings isn’t easy.

I do it. But that’s my job!

So here’s the thing…The SEC has been down this road before. It’s done studies… and studies of studies (I’m not kidding). So guess what? Here comes another one.

SEC Chief Jay Clayton was touring Nashville last week and said he wants to open up new options for everyday investors.