U.S. SEC Chairman: The Investor Advisory Committee is exploring how to promote individual investor participation in private markets.

[Chairman of the U.S. SEC: Investor Advisory Committee is exploring how to promote individual investor participation in private markets] U.S. SEC Chairman Paul Atkins delivered a speech at the Investor Advisory Committee meeting. Paul Atkins stated that he has requested the SEC to approve the release of a conceptual notice to gather public feedback on whether the standard should be updated to reflect the evolution of financial markets and corporate legal structures. The SEC welcomes foreign companies seeking to enter the U.S. capital markets. Our goal is to better understand the significant changes in the number of foreign companies listed in the U.S. over the past two decades and their impact on U.S. investors and the U.S. market. Notable changes include the composition of foreign companies reporting to the SEC, as well as the trend of incorporating in jurisdictions such as the Cayman Islands, which are different from the location of the company's headquarters and operations, and which are subject to governance frameworks concerning shareholder interests. In light of these changes, I believe it is necessary for us to consider whether the rationale for the SEC's initial special accommodations for foreign companies and the current standards remain reasonable. At the same time, today’s second panel discussion will explore the regulatory framework for managing retail investors’ access to private market assets. Specifically, from 2002 until recently, closed-end funds that invested 15% or more of their assets in private equity funds were limited to investors who met the accredited investor criteria. Thus, for over twenty years, retail investors who did not qualify as accredited investors have lacked access to private assets. The committee is exploring ways to facilitate individual investor participation in private markets while protecting these investors from bad actors and fraud. There is demand among investors for these products. However, we must also establish appropriate guardrails to guide pensions and other funds to invest sensibly in these private investment vehicles.