Hedge Funds for Everyone: SEC Ponders Letting in the Not-So-Rich
- Agency asks if it should change rules that exclude mom-and-pop
- Any revisions to SEC regulations would likely be years off
SEC Chairman Jay Clayton
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Hedge funds and private equity firms may be inching closer to getting their hands on a big pot of money that U.S. regulators have mostly kept out of reach: Cash from mom-and-pop investors.
Such an opportunity would be significant for industries that have largely had to restrict their clients to investors like the super rich, sovereign wealth funds and state pensions. But allowing retail money in also poses risks, including the danger of exposing financial neophytes with limited nest eggs to investments they don’t understand.