SEC proposes rule to open private markets to retail investors
Big news from the SEC: it's proposing a rule change that could let regular folks invest in private markets, not just big institutions or wealthy people.
The plan, sent to the White House for review, would update some old investment laws so more people can get in on opportunities usually reserved for the rich.
SEC plan faces transparency concerns
Right now, only "qualified clients" can pay performance fees. If the new rules go through, retail investors could join via registered funds.
SEC Chairman Paul Atkins says it's about "freedom and fairness." But critics warn that private investments don't offer much transparency and could be harder to value because they provide fewer disclosures.
Once the White House is done reviewing, everyone will get a chance to weigh in during a public comment period.