U.S. SEC Proposes Lowering Private Investment Thresholds for Retail Investors

ME News reports that on October 1 (UTC+8), the U.S. Securities and Exchange Commission (SEC) proposed a series of reforms aimed at expanding individual investors’ access to private markets, enabling more retail investors to participate in private equity, early-stage startups, and other alternative assets. One proposal would allow registered investment advisers to charge performance fees of up to 20% based on fund performance, aligning fee structures more closely with the typical hedge fund model of “2% management fee + 20% performance fee” to attract more private fund managers to serve individual investors. SEC Chairman Paul Atkins stated that the Commission seeks to explore ways to broaden individual investors’ participation in private markets while safeguarding against fraud and misconduct. The SEC also proposed expanding the definition of “accredited investor” to include more individuals holding professional credentials, such as certified public accountants and chartered financial analysts. (Source: BlockBeats)