Regulatory & Compliance | 11.05.26

‘Small’ RIAs Get Larger Under SEC Amendments

by: Edward Rueda

The U.S. Securities and Exchange Commission (SEC) adopted amendments redefining “small entities” among registered investment advisors (RIAs) and investment companies, updating standards last revised in 1998. The asset-under-management threshold for RIAs rises from $25 million to $1 billion, while the investment company threshold increases from $50 million to $10 billion. The SEC also eliminated advisors’ $5 million total-assets threshold, revised how fund assets are aggregated and required inflation-based adjustments every decade. The changes reclassify approximately 75% of RIAs as small entities, compared with fewer than 3% previously. Supporters say the revisions reduce unnecessary regulatory burdens and could encourage advisor independence, mergers and acquisitions.

Read the full article on planadviser