Blue Vault
On September 30, 2026, the Securities and Exchange Commission proposed several changes that could broaden how individual investors access private-market investments. The proposals address interval funds, regulated closed-end funds and business development companies, while the SEC is also seeking comment on additional ways individuals could qualify as accredited investors.
What the SEC Is Proposing
One proposal would modernize the interval-fund framework by giving interval funds more flexibility in how repurchase offers are scheduled, including the ability to better align repurchases with the liquidity profile of the underlying portfolio.
The SEC is also proposing a rules-based framework that would allow regulated closed-end funds and business development companies to issue multiple share classes rather than relying on individual exemptive orders.
Separately, the Commission is considering additional non-financial pathways for individuals to qualify as accredited investors. Those could include passing an accredited-investor exam developed by FINRA or holding certain professional credentials or licenses.
Why It Matters for Advisors
If private-market access expands, advisors may encounter a broader range of investment structures, liquidity terms and share-class options.
That makes several due-diligence questions increasingly important:
- How does liquidity actually work?
- What are the repurchase terms and limitations?
- How do share classes differ?
- What fees and expenses should be compared?
- How does the investment fit with a client’s broader portfolio?
- How should it be compared with other alternative investments serving a similar portfolio role?
Expanded access does not make these questions less important. It may make them more important as advisors evaluate a wider range of structures and investment options.
Interval Funds Are a Good Example
Interval funds provide periodic repurchase opportunities rather than continuous daily liquidity.
The SEC’s proposal would give these funds more flexibility to align repurchase schedules with the liquidity profile of their portfolios.
For advisors, that is a reminder that the word “liquidity” alone does not tell the whole story.
Important questions can include how frequently investors may request liquidity, how much of the fund can be repurchased, what happens when requests exceed the amount available and how that structure fits with the client’s broader liquidity needs.
Multiple Share Classes Could Add Another Comparison Point
The SEC is also proposing to allow regulated closed-end funds and business development companies to issue multiple share classes under a rules-based framework.
For advisors, that could add another layer to the comparison process. Two investors could potentially gain exposure to the same underlying strategy through share classes with different economic characteristics.
That means evaluating the investment itself may not be enough. Advisors may also need to understand which share class is being considered and how its terms affect the client.
Accredited-Investor Changes Could Broaden the Eligible Audience
The SEC is separately considering whether certain professional credentials or an exam could provide additional ways for individuals to qualify as accredited investors.
The Commission specifically identified credentials and licenses such as CPA, CFA, CFP, Series 79 and Series 86/87 among the possibilities under consideration.
If adopted, these changes could expand the group of investors eligible to participate directly in certain private offerings.
But eligibility and suitability are not the same thing.
An investor’s ability to access a private-market investment does not by itself answer whether the investment is appropriate, how it should be sized or how it fits within the broader portfolio.
The Advisor Takeaway
The broader issue is not simply whether private-market access expands.
It is whether advisors have the research and context needed to evaluate a growing range of investment structures, liquidity terms and portfolio exposures.
As the menu of alternative investments expands, advisors may increasingly need to answer a basic question:
What am I actually comparing, and how does this investment fit with everything else the client already owns?
Standardized research and comparable investment data can help advisors answer that question more consistently.
The SEC actions discussed above are proposals and requests for public comment as of September 30, 2026. They have not been adopted as final rules and may change through the rulemaking process.
