SEC Proposes Rule Changes to Expand Retail Investor Access to Private Markets

The US Securities and Exchange Commission has unanimously voted to propose rule amendments to expand retail investor access to private markets. Under the proposed framework, retail investment funds and registered investment advisers could charge performance-based fees subject to enhanced disclosures. The overhaul also modernizes interval funds by providing more flexible redemption schedules and allowing multiple share classes without exemptive orders. Furthermore, the SEC is seeking public comment on broadening accredited investor criteria to include professional credentials like CPA or CFA licenses or a dedicated FINRA-administered exam.