U.S. Securities and Exchange Commission Commissioner Uyeda urges review of accredited investor rules and clearer disclosure around greenwashing funds

The U.S. Securities and Exchange Commission published remarks by Commissioner Mark T. Uyeda highlighting research on retail participation in private markets and on “greenwashing” by funds, and arguing these findings should inform future policymaking. Speaking in his individual capacity, Uyeda suggested the SEC should consider modernizing the exemptive landscape and revisiting the accredited investor definition to expand individual access to private company investments without abandoning investor protection. On private markets, he cited research indicating private equity investments by individual investors perform similarly to those of institutions and outperform public markets, and pointed to enabling market structures such as lower-minimum funds, capital pooling via advisers, and advisers’ networks for access to fund managers. He also referenced Office of the Investor Advocate survey results showing interest in private company investing from 14.4% of accredited investors and 4.7% of non-accredited investors. On greenwashing, he cited a paper finding that greenwashing funds charge higher fees while attracting greater inflows, and that such funds are more likely to incur regulatory costs and experience outflows, including as reflected in ESG-related SEC comment letters; he argued investors should not face higher costs without clear and unequivocal disclosure of the downsides of strategies not directly tied to financial performance.