03.16.26

SEC Wants More ‘Realistic’ View of Small Advisory Firms, Commissioner Says

by: James Rogers

The U.S. Securities and Exchange Commission (SEC) is proposing to update its definition of small advisory firms to better reflect today’s industry, potentially easing compliance burdens. According to SEC Commissioner Hester Peirce, the current thresholds are outdated. The proposal "will help us to think about firms more realistically,” Peirce said. The plan would raise the asset limit for registered investment advisors from $25 million to $1 billion and for investment companies from $50 million to $10 billion. Supporters say the proposal modernizes oversight and considers smaller firms’ resource constraints, while allowing flexibility for adopting AI and updating record-keeping.

Read the full article on InvestmentNews