SEC Plan Could Widen Retail Access to Private Markets

The SEC plans to give retail investors greater access to private markets. The proposal could reshape who can invest in assets traditionally reserved for wealthier investors.

Bloomberg reported the development on September 1, 2026. The proposal reached the White House Office of Management and Budget on August 31.

Opening the Private-Markets Door

Institutional investors and wealthy individuals have historically dominated private markets. Regulators traditionally assumed these investors could better assess the risks associated with private investments.

SEC Chairman Paul Atkins has challenged those restrictions. He argues they prevent ordinary investors from accessing fast-growing companies that attract private capital.

At a March 2026 SEC event, Atkins described broader private-market access as an issue of “freedom and fairness.”

The Details

The proposal targets rules under the Investment Advisers Act of 1940 and Investment Company Act of 1940.

The SEC wants to modernize the framework governing adviser performance fees. It also wants registered funds to provide retail investors with private-market exposure.

However, the SEC’s rulemaking notice provided few additional details. Investment advisers currently face limits on charging performance fees to clients.

Thoreau Bartmann, a K&L Gates partner and former SEC attorney, explained the potential impact. He told Bloomberg that limiting performance fees can also restrict access to an asset class.

A Push beyond Wealthy Investors

The proposal reflects a broader debate about who should access private investments. Atkins has repeatedly criticized restrictions favoring institutions and wealthy individuals.

Fast-growing companies can attract private capital without entering public markets. Consequently, many retail investors cannot participate directly in their growth.

The SEC challenged that divide in its statement. It argued that public and private market exposure should not remain reserved for wealthy insiders.

Investor Protection Remains the Counterargument

Private investments generally provide fewer disclosures than publicly traded securities. Those differences can make private assets harder for investors to evaluate and value.

Better Markets has criticized efforts to widen retail access. The group warned in 2026 that private-market assets could expose individual investors to additional risks.

That disagreement defines the proposal’s central tension. The SEC favors broader participation, while critics question whether retail investors receive enough information.

Why It Matters

The proposal could change access to investments traditionally concentrated among institutions and wealthy individuals. Registered funds could become a pathway for broader participation.

Performance fees represent another important part of the proposal. Changing those restrictions could widen the investment strategies advisers can offer their clients. BREIT inflows have already shown renewed investor demand for nontraded private real estate exposure.

However, greater access would not eliminate private markets’ underlying disclosure and valuation challenges. Those concerns will remain central as regulators consider changes.

What’s Next

The White House must complete its review before the SEC can formally release the proposal. Bloomberg reported the measure reached OMB on August 31.

The SEC’s three-member commission would then release the proposal for public comment. The agency would review that feedback before developing a final version.

Commissioners must vote again before adopting the final rule. The eventual proposal should reveal how far the SEC intends to widen private-market access.