Wall St regulator unveils new retail investor proposals for private assets
XLF•The SEC proposed rules to broaden access to private assets, change investment advisers’ performance fees and allow closed-end funds to redeem shares monthly. The proposals are subject to public notice and comment before any adoption decision.
1. Broader access proposed
The SEC proposed changes that could let more certified professionals qualify as accredited investors and access private investments, including private equity, private credit, real estate and venture capital. The agency also issued five notices seeking comment on allowing several professional designations to qualify.
2. Fees and fund liquidity
One proposal would give asset managers more freedom to charge performance fees based on clients’ capital gains. Another would let closed-end funds redeem investor shares monthly and offer more share classes.
3. Reactions differ
Industry trade groups welcomed the proposals, while Better Markets argued they could steer ordinary savers toward investments that do not generate better returns and offer fewer protections. The proposals must go through public notice and comment before the SEC decides whether to adopt them.
