The U.S. Securities and Exchange Commission (SEC) is set to hold a public roundtable on March 4, 2026, aimed at evaluating the growing involvement of retail investors in private markets. The event will focus on emerging issues surrounding the expansion of retail access to private assets, highlighting governance, valuation, and regulatory frameworks as investment landscapes evolve.
How Are Private Markets Becoming More Accessible to Public?
In the past, private markets, comprising private equity, credit, and alternative investment strategies, were accessible mainly to institutional and accredited investors. However, innovations in fund structures have started opening these markets to a broader audience. Asset managers are developing diverse offerings, prompting regulators to reconsider existing rules to adapt to these market shifts.
What Challenges Do Public and Private Markets Face?
The roundtable will begin with a panel titled “When Two Worlds Collide,” addressing the challenges as traditionally private asset classes become available publicly. Industry experts like Cliff Asness from AQR Capital Management and Katie King from PwC will explore topics such as valuation transparency and regulatory oversight. Concerns like the unresolved MMTLP controversy have also been raised, reflecting broader issues in investor confidence and market stability.
The SEC announced that the roundtable would be open to the public both in person and online, focusing on the valuation and responsibilities of extending private market investments to individual investors.
Addressing Governance Challenges
A second panel will address governance challenges posed by new fund models intended to widen retail access to private markets. Moderators Blair Burnett and Michael Republicano from the SEC will lead discussions on compliance with the 2a-5 rule for fund valuation and best practices for overseeing these complex structures. Representatives from PwC, Deloitte, and other notable firms will share insights on managing regulatory and operational risks.
Brian Daly, Director of the SEC Division of Investment Management, will start the event along with former SEC Chair Paul Atkins. Professionals from asset management and service groups will discuss the evolving regulatory landscape. The roundtable aims to assess the risks and benefits of enabling greater retail participation in private markets transparently.
Furthermore, the SEC has recently provided WisdomTree Digital Trust with a regulatory exemption for its digital money market fund, signaling flexibility in pricing mechanisms. This move demonstrates the agency’s awareness of evolving digital products’ impact on the wider financial and regulatory sectors.
The detailed discussions during the roundtable are expected to yield valuable insights into the current trajectory of private market accessibility:
- The role of emerging fund structures in expanding market reach to retail investors.
- Challenges in maintaining transparency and investor protection within new product offerings.
- Strategic regulatory measures to uphold market integrity amidst growing retail participation.
The SEC emphasizes the importance of adapting to financial markets’ shifting dynamics to balance innovation with investor protection, thus paving the way for a more inclusive private investment ecosystem.
