Private markets may get boost under new SEC (Salon.com)

Retail investors, typically shut out of investment opportunities in private markets, could see a relaxing of rules allowing greater access. In the lead comments, FrontLine Compliance Founder and President Amy Lynch states that the SEC under the previous Trump administration had a more lenient stance on this issue that was pro-capital formation and sought greater access to private markets for ordinary investors. She adds that the SEC went so far to make changes to the definition of an accredited investor to enable qualification based on professional experience, rather than just net worth or income, and the incoming SEC could go even further. Opportunities to invest in private companies, as well as private equity and venture capital funds, could be on the table for the retail investor under the new SEC. However, individuals investing in these markets face greater risks. Ms. Lynch explains how these investors may not be able to handle fewer winners and resulting losses, whereas larger, sophisticated investors have the financial means to absorb the losses when they occur. See Salon,com, “How Trump could change the private investment market”