Senate Democrats demanded that the Securities and Exchange Commission (SEC) do more to protect investors.

Sens. Carl LevinCarl Milton LevinRemembering leaders who put country above party Strange bedfellows oppose the filibuster Listen, learn and lead: Congressional newcomers should leave the extremist tactics at home MORE (D-Mich.), Jack ReedJohn (Jack) Francis ReedRepublicans raise concerns over Trump pardoning service members Overnight Defense: Trump clashes with Macron at NATO summit | House impeachment report says Trump abused power | Top Dem scolds military leaders on Trump intervention in war crimes cases Top Armed Services Democrat scolds military leaders on Trump's intervention in war crimes cases MORE (D-R.I.), Elizabeth WarrenElizabeth Ann WarrenBiden: 'I'd add' Warren to my list of potential VP picks Warren says she made almost M from legal work over past three decades How can top Democrats run the economy with no business skill? MORE (D-Mass.) and Ed MarkeyEdward (Ed) John MarkeyThere's a lot to like about the Senate privacy bill, if it's not watered down Trump administration drops plan to face scan all travelers leaving or entering US Advocates hopeful dueling privacy bills can bridge partisan divide MORE (D-Mass.) sent a letter on Tuesday to SEC Chairwoman Mary Jo White, asking her to implement safeguards to protect investors from fraud and abuse in private securities offerings.


“We urge you to act promptly to finalize and strengthen investor protections for private securities offerings that you proposed more than one year ago,” the senators wrote. “We are deeply concerned that, for the last year, the Commission has allowed private securities offerings to take place using general solicitation and advertising without adequate investor protections.”

Last year, the SEC issued a rule allowing general solicitation and advertising of certain private securities offerings. Issuers can use highway billboards, Internet ads, telemarketing to seniors and even T-shirts to market securities to investors. The senators said they were concerned that some are being targeted without the knowledge or disclosure of risks.

“A wave of fraudulent schemes could hurt confidence in the integrity of our markets broadly, and unfortunately, today, investors are unnecessarily exposed to undue risks of fraud and financial loss,” the letter stated. “It is vital that prompt action be taken.”

The senators recommended that the SEC require solicitors to disclose any solicitation materials they use to lure investors and to register before being allowed to solicit investors.