The US Securities and Exchange Commission has voted to propose rule amendments intended to broaden retail investor participation in private market strategies while maintaining investor safeguards.
Proposed Regulatory Changes for Investment Advisers and Funds
On 30 September 2026, the Securities and Exchange Commission (SEC) voted to propose regulatory amendments designed to facilitate capital formation and expand retail investor options across public and private markets.
Under the proposed rules, registered investment advisers would have expanded ability to receive performance-based compensation from specific client categories, including regulated funds, calculated on capital gains or capital appreciation. Corresponding amendments to fund registration and reporting forms would mandate clear disclosure of these performance-based fee arrangements.
The proposals also aim to modernise the interval fund framework by allowing repurchase schedules that better align with portfolio liquidity profiles. Additionally, the SEC proposes replacing current exemptive orders with a rules-based framework permitting regulated closed-end funds to issue multiple share classes.
Expanding Accredited Investor Qualification Pathways
In a separate request for public comment, the Commission is evaluating additional non-financial methods for individual investors to qualify as accredited investors. One proposal includes the potential designation of an accredited investor examination to be developed by the Financial Industry Regulatory Authority (FINRA).
The SEC is also considering whether holding specific professional certifications or licenses in good standing should qualify individuals as accredited investors. Designations under review include the US Certified Public Accountant (CPA) license, the Chartered Financial Analyst (CFA) charter, the Certified Financial Planner (CFP) certification in the United States, and FINRA Series 79, Series 86, and Series 87 licenses.
Public comment periods on these proposing releases and notices will remain open for 60 days following publication in the Federal Register.
Frequently Asked Questions
What is the primary objective of the SEC's proposed rule amendments?
The proposed amendments aim to facilitate capital formation and expand retail investor choice in private market strategies while maintaining investor protections and safeguards.
Which professional credentials are being considered for accredited investor qualification?
The SEC is evaluating US CPA licenses, CFA charters, CFP certifications in the United States, and FINRA Series 79, Series 86, and Series 87 licenses, as well as a potential FINRA-developed exam.
How long is the public comment period for these SEC proposals?
The public comment periods remain open for 60 days after publication of the releases and notices in the Federal Register.
Sources
Primary reference materials
- Fact Sheet
- Potential Designation of Passage of an Accredited Investor Exam
- Potential Designation of U.S. Certified Public Accountant License
- Potential Designation of Chartered Financial Analyst Designation
- Potential Designation of Certified Financial Planner Certification
- Potential Designations of Series 79, Series 86, and Series 87 Licenses
- SEC Excess Personal Property Guidance
