The SEC on Wednesday proposed reforms to broaden individual investor access to
private markets, enabling greater retail participation in private equity,
early-stage startups and other alternatives. One proposal would allow registered
investment advisers to charge performance fees of up to 20%, bringing fee
structures closer to some hedge funds’ 2% management/20% performance model. The
SEC also proposed widening the accredited investor definition to include more
credentialed professionals, explicitly citing CPAs and CFAs. SEC Chair Paul
Atkins said the commission aims to expand retail access while guarding against
fraud and misconduct.
