SEC Approves Plans to Expand Retail Investor Access to Private Markets
The U.S. Securities and Exchange Commission (SEC) has approved new proposals aimed at increasing access for individual investors to private markets, despite growing concerns about liquidity risks in the sector. The changes include allowing registered investment advisers to charge performance fees of up to 20%, a level common in hedge funds, which could attract more asset managers into retail wealth products. SEC Chairman Paul Atkins emphasized that expanding opportunities for ordinary Americans is one of his priorities while ensuring investor protection remains intact. These proposals align with the Trump administration's broader push to ease regulations and allow greater access to alternative assets through retirement accounts like 401(k)s, as outlined in an executive order from last August. However, these developments come amid heightened scrutiny over liquidity mismatches between private market structures and retail investors' expectations. Earlier this year, several private credit funds faced redemption pressures, prompting some managers—including Blackstone and Apollo—to impose withdrawal caps.
Topics: accredited investor licenses individual investors performance fees private markets SEC