The Securities and Exchange Commission (SEC) voted on September 30, 2026, to propose regulatory amendments aimed at facilitating capital formation in public and private markets.
These proposals seek to broaden the choices available to retail investors and promote innovation in regulated fund structures while maintaining appropriate investor protections, according to the SEC’s official statement.
Among the key measures, the SEC intends to extend the possibility for registered investment advisers to receive performance-based compensation calculated on capital gains, including for certain clients such as regulated funds. Traditionally reserved for private funds like hedge funds or venture capital, this compensation could thus be extended to regulated funds, encouraging their offering of private market strategies.
The SEC also proposes to modernize the framework for interval funds, notably by allowing better alignment of redemption periods with portfolio liquidity, as well as replacing current exemption orders with a regulatory framework for regulated closed-end funds issuing multiple classes of shares.
SEC Chairman Paul S. Atkins emphasized that these efforts respond to growing demand from retail investors to access private markets while protecting them against fraud and bad actors. These initiatives complement efforts related to President Trump’s executive order on democratizing access to alternative assets for 401(k) investors.
The Commission is also seeking public comments on the possibility of qualifying certain individual investors as accredited through holding recognized professional certifications, which could further open access to private markets.