05.20.25

SEC Chair Signals Investor Access to Private Markets Could Soon Broaden

by: Dylan Tokar; Matt Wirz

Securities and Exchange Commission (SEC) Chair Paul Atkins said at an annual regulatory conference that he would direct the agency’s staff to reconsider guidance that limits how much closed-end funds can invest in private funds. Currently, closed-end funds that invest 15% or more of their assets in private funds must restrict sales to investors who satisfy the accredited investor standard. A minimum investment requirement of $25,000 is also required. SEC Republican commissioners have long discussed ways to give retail investors greater access to private markets, including by scrapping the accredited investor definition altogether. The SEC last revised the definition in 2020. There has also been talk of Congress passing changes, including a possible exam.

Read the full article on The Wall Street Journal