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SEC Proposes Expanding Retail Investor Access to Private Markets

The proposal would add an exam-based path to accredited investor status and expand access to private funds, with 12.6% of Americans qualifying under current rules.

  • On Wednesday, the SEC announced proposed rules to broaden retail access to private equity and credit funds, aiming to reduce reliance on historical financial thresholds.
  • These changes follow President Trump's executive order directing agencies to expand private market access, building on Department of Labor efforts to incorporate private assets into 401 plans.
  • A new proposal would allow individuals 18 or older to become accredited investors by passing an exam developed by the Financial Industry Regulatory Agency, or FINRA.
  • Currently, only 12.6% of the population qualifies as accredited investors; the SEC also proposed allowing more professionals like accountants and enabling business development companies to offer multiple share classes.
  • SEC Chair Paul Atkins noted that financial thresholds are not sole indicators of investment ability, stating "risks. agree with the fundamental notion" that access should not be limited.
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BizToc broke the news on Wednesday, September 30, 2026.
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