SEC Proposes Expanding Retail Access to Private Markets
The Securities and Exchange Commission proposed new rules to allow more retail investors to access private equity and early-stage startups.
The United States Securities and Exchange Commission proposed several measures on September 30, 2026, to expand retail investor access to private markets, including private equity and early-stage startups. These proposals align with the Trump administration's objective of reducing barriers for individual investors seeking high-yield products.
Key changes include expanding the accredited investor definition to include professionals such as chartered financial analysts and certified public accountants. The agency also proposed allowing registered investment advisers to charge performance fees of up to 20% to incentivize managers and granting interval funds greater flexibility regarding redemptions.
SEC Chairman Paul Atkins stated that a priority for the commission is to facilitate individual participation in private markets while protecting investors from fraud. Director of the Division of Investment Management Brian Daly supported the changes to interval funds, noting that their current structure restricts their use. While proponents argue these moves benefit smaller investors, critics warn that the changes may expose retail traders to non-transparent, high-risk investments. The agency will accept public comments on the proposals for 60 days.
