SEC Proposes Easing Private Market Access for Retail Investors

The U.S. Securities and Exchange Commission (SEC) has introduced a series of reform proposals aimed at expanding retail investor access to private equity, early-stage startups, and other alternative assets. One proposal would allow registered investment advisers to charge performance fees of up to 20%, aligning fee structures more closely with hedge funds to encourage firms to serve individual investors. Additionally, the SEC plans to broaden the definition of "accredited investor" to include more professionals, such as certified public accountants and chartered financial analysts. SEC Chair Paul Atkins stated that the commission aims to increase private market participation while maintaining safeguards against fraud and misconduct.