Securities Regulation Daily Wrap Up, SEC NEWS AND SPEECHES—SEC proposes expansion of ‘responsible retailization‘ of private markets, (Sep 30, 2026)

By R. Jason Howard, J.D.

The proposals are important steps towards providing individual investors with more access to private market investment opportunities.

At an SEC public meeting on September 30, 2026, Chairman Paul S. Atkins issued a statement on proposals to expand “responsible retailization” of private markets by “embracing investment growth and innovation across all asset classes, while protecting individual investors with appropriate safeguards.”

There were three items on the meeting agenda. First, the Commission considered whether to issue a release proposing rule amendments expanding the circumstances under which a registered investment adviser may receive performance-based compensation. Second, the Commission considered whether to issue a release proposing amendments to the rule that allows regulated closed-end funds to make repurchase offers to shareholders at net asset value at periodic intervals. Finally, the Commission considered whether to issue five notices that the Commission is considering regarding whether to designate by order certain certifications, designations, or credentials as qualifying natural persons for accredited investor status.

Two proposals from the Division of Investment Management were considered. The first proposed rulemaking is “designed to modernize the regulatory framework related to performance-based compensation” which can “offer a rational and effective means to define and align adviser and investor goals.” The second is designed to “modernize, enhance, and simplify the interval fund framework, which may allow for the broader adoption of the interval fund structure by fund managers seeking to offer retail investors exposure to private markets.”

The Chairman stated that he was “pleased to support the rulemaking package and excited by the possibilities that it presents” because, when taken together, the proposals are “important steps towards providing individual investors with more access to private market investment opportunities, including through the registered fund channel.”

The third item on the agenda concerned a recommendation from the Division of Corporation Finance to “issue five notices of potential designations of additional ways that an individual can qualify as an accredited investor.”

The Chairman stated that he supported the recommendation to issue the notices informing the public of the potential designations for an individual to qualify as an accredited investor because the potential designations “would leverage the Commission’s previous recognition that an individual can demonstrate the requisite financial sophistication to participate in offerings exempt from Securities Act registration by holding in good standing certain professional certifications, designations, or credentials.”

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