The U.S. Securities & Exchange Commission has proposed amendments to the rules defining which registered investment companies, investment advisers, and business development companies qualify as “small entities” for purposes of the Regulatory Flexibility Act (RFA). The proposal would increase the relevant thresholds and adjust related calculations to better align the SEC’s RFA analyses with the population of firms considered small. Under the proposed approach, the asset-based thresholds used to determine small entity status would be raised, and the method for aggregating assets of related funds would be updated. The amendments would also introduce a mechanism for inflation adjustments to the asset-based thresholds by SEC order every 10 years. The proposing release will be published in the Federal Register, with comments due 60 days after Federal Register publication.
U.S. Securities & Exchange Commission2026-01-07
SEC proposes raising small entity thresholds for investment companies and advisers under the Regulatory Flexibility Act
The U.S. Securities & Exchange Commission has proposed amendments to redefine "small entities" under the Regulatory Flexibility Act by raising asset-based thresholds and updating asset aggregation methods for registered investment companies, advisers, and business development companies. The proposal includes a mechanism for inflation adjustments every 10 years, with comments due 60 days post-publication in the Federal Register.