In remarks to the Investor Advisory Committee, U.S. Securities & Exchange Commission Chairman Paul S. Atkins pointed to the SEC’s concept release seeking public input on whether to update the standard that determines which foreign companies qualify for foreign private issuer (FPI) accommodations. He also described a recent shift in the registration review of certain registered closed-end funds that invest meaningfully in private funds, under which SEC staff will no longer issue comments requiring sales to be limited to accredited investors. On FPIs, the concept release asks whether foreign companies listed in the United States should face additional conditions to receive accommodations not available to U.S. companies, including a minimum foreign trading volume or a listing on a major foreign exchange. Atkins framed the review around changes over the last two decades in the population of foreign registrants, including companies incorporating in jurisdictions that differ from where they are headquartered and operate. On retail access to private market exposure, he said that, from 2002 until recently, sales of closed-end funds investing 15 percent or more of assets in private funds were limited to accredited investors, but that position has been reconsidered and will no longer be raised through registration comments; he linked the change to private-market growth and increased oversight and reporting, citing private fund assets rising from USD 11.6 trillion to USD 30.9 trillion in the last decade. The SEC is exploring additional ways to facilitate individual participation in private markets alongside guardrails on issues including liquidity, valuation, diversification, and investment terms, and is working with the Department of Labor on implementing President Trump’s executive order on access to alternative assets for 401(k) investors. Atkins said he expects to review public feedback and the committee’s input on the FPI eligibility concept release.
U.S. Securities & Exchange Commission 2025-09-18
U.S. Securities & Exchange Commission Chair Atkins highlights foreign private issuer eligibility review and ends staff comments restricting certain closed-end funds to accredited investors
SEC Chairman Paul S. Atkins discussed a concept release for updating foreign private issuer accommodations, possibly adding conditions like minimum foreign trading volume. He noted a shift in the registration review of certain closed-end funds, removing the sales limitation to accredited investors, linked to private market growth and increased oversight. The SEC is exploring ways to facilitate individual participation in private markets with appropriate safeguards.