Securities and Exchange Commission Chairman Paul Atkins asked his agency this month to review decades-old rules that restrict who can invest in private markets. The request underscores how the wealth management industry is in the midst of a transformation that is resulting in private investments and alternatives becoming more accessible to everyday retail investors across the U.S.
The rules Atkins is seeking to revise were established 23 years ago for private funds, and require investments of at least $25,000 and restrict sales to those who meet accredited investor standards. The rules were established to ensure less experienced and financially savvy investors weren’t taking undue risk while investing in private markets, but the chairman says it’s time to rethink that as the private markets are booming: Over the past decade, they’ve grown from $11.6 trillion to $30.8 trillion, Atkins said. Other reports have said the Trump administration is considering an executive order to bring private equity to 401(k)s, which could spur faster adoption.
