The US Securities and Exchange Commission is preparing a proposal to expand retail investor access to private markets and permit investment advisers to charge performance fees to a broader client base. The planned proposal was submitted to the White House Office of Management and Budget on Monday, signaling the regulator's latest effort to open up investment opportunities traditionally reserved for accredited investors. This move represents a significant shift in SEC policy toward democratizing access to private equity, venture capital, and other alternative asset classes that have historically been off limits to most mom-and-pop investors.

The White House Office of Management and Budget will now review the proposal before it can proceed to public comment. If adopted, the changes could reshape how retail investors participate in private markets and how investment advisers structure fee arrangements. The initiative aligns with ongoing debates about investor protection versus market access in the evolving landscape of private markets.