ENPRIVATE MARKETS & INVESTOR ACCESS · OCTOBER 5, 2026
SEC Proposes Broader Retail Access to Private-Market Funds
The SEC proposed amendments addressing performance-based compensation, interval-fund repurchases, multi-class closed-end funds, and possible new ways for individuals to qualify as accredited investors.
What the SEC proposed
Source publication date: September 30, 2026. The Securities and Exchange Commission voted to propose amendments intended to expand retail investor choice and facilitate capital formation in public and private markets while retaining investor safeguards. The action is a proposal subject to public comment; it is not a final rule and does not make any investment suitable or available automatically.
- 01Performance-fee rules would change
- 02Interval-fund framework would modernize
- 03Accredited-investor pathways remain under review
The proposal addresses fund structure and adviser compensation
The proposed changes would expand when registered investment advisers may receive performance-based compensation from certain clients, including regulated funds, and require related disclosure on fund forms. They would also modernize the interval-fund framework, including repurchase timing intended to better match portfolio liquidity, and replace existing exemptive orders with a rules-based framework for regulated closed-end funds to issue multiple share classes.
The SEC also requested comment on accredited-investor pathways
Separately, the Commission requested comment on whether individuals could qualify as accredited investors through an exam or by holding specified credentials in good standing. The release lists examples including CPA, CFA, CFP, Series 79, and Series 86/87 credentials. The comment periods remain open for 60 days after publication of the releases and notices in the Federal Register.
Practical investor takeaway
Private assets may involve limited liquidity, subjective valuation, long holding periods, leverage, complex fees, performance incentives, concentration, tax consequences, and difficult exits. Verify that the rules are final and effective before relying on them. Read the offering and fund documents, understand repurchase restrictions and gates, compare gross and net returns, evaluate conflicts and manager history, and size exposure to withstand delayed liquidity or loss. Qualified securities, tax, and investment professionals should review the specific structure.
Investors should treat the action as a proposal and evaluate liquidity, valuation, fees, leverage, conflicts, manager experience, disclosures, repurchase limits, tax consequences, and loss capacity before considering private-market exposure.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.