The U.S. SEC plans to relax the thresholds for private investment to attract retail investors

The U.S. Securities and Exchange Commission (SEC) has proposed a reform plan aimed at expanding the channels for individual investors to participate in the private market. The proposal allows registered investment advisors to charge a performance fee of up to 20% based on fund performance, attracting more private management institutions to serve individual investors.

SEC Chairman Paul Atkins stated that he hopes to explore ways to expand individual investor participation in the private market while preventing fraud and misconduct. The SEC also proposed to broaden the definition of "accredited investors."