SEC Chair Asks IAC for Input on Foreign Private Issuers and Private Market Access

SEC Chair Paul Atkins and Commissioners Hester Peirce and Caroline Crenshaw asked the Investor Advisory Committee to consider issues on the regulation of foreign private issuers and on allowing retail investors access to private markets.

Mr. Atkins highlighted the trend of companies incorporating in offshore jurisdictions while conducting business elsewhere, questioning whether such firms should continue to receive special accommodations. Ms. Peirce asked whether investors are receiving enough information under current disclosure regulations to make sound decisions. Ms. Crenshaw highlighted regulatory gaps that may allow insiders in certain jurisdictions to avoid accountability, saying tighter oversight and leveling the playing field was needed.

On retail investor access to private assets, such as hedge funds and private equity, the Commissioners acknowledged investor demand. Mr. Atkins described broader participation as a matter of fairness, citing the Trump administration’s Executive Order on democratizing access, while calling for safeguards related to liquidity, valuation, and fiduciary responsibility. Ms. Peirce supported more open access, pointing out that overly restrictive rules could limit investor choice and hurt small issuers; she questioned whether regulators should be deciding what is in investors’ "best interest." Ms. Crenshaw urged caution, warning that channeling retail investors into illiquid private investments through registered funds could weaken protections under existing law.