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, explic

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.