Story perspectives

SEC Proposes Dramatic Increase to Adviser Small-Entity Threshold

1/9/2026

Summary

Story summary

The U.S. Securities and Exchange Commission proposed raising the investment adviser small-entity threshold from $25 million to $1 billion in assets under management.
The change would reflect the industry's structure and reduce regulatory burdens on smaller firms.
Currently, 3% of SEC-registered firms qualify as small, down from 20% in 1998.
The Investment Adviser Association supports the proposal.
Advisers will have 60 days to comment after publication in the Federal Register.

1 of 1

Story summary

The U.S. Securities and Exchange Commission proposed raising the investment adviser small-entity threshold from $25 million to $1 billion in assets under management.
The change would reflect the industry's structure and reduce regulatory burdens on smaller firms.
Currently, 3% of SEC-registered firms qualify as small, down from 20% in 1998.
The Investment Adviser Association supports the proposal.
Advisers will have 60 days to comment after publication in the Federal Register.