Remarks by Chair Atkins at the Investor Advisory Committee Meeting

Summary

Chairman Paul S. Atkins opened his first in-person meeting as SEC Chair by thanking members of the Investor Advisory Committee and welcoming new participants. He highlighted the participation of two senior representatives from the UK Financial Conduct Authority, noting the longstanding US–UK collaboration on capital markets and the timeliness of the panel on foreign private issuers (FPIs).

Atkins reviewed the SEC’s historical approach to special accommodations for foreign companies, tracing the standard back to the early 1980s. He explained that the Commission issued a June 2025 concept release to solicit public feedback on whether the eligibility standard for FPIs should be updated—for example, by adding requirements such as minimum foreign trading volume or listing on a major foreign exchange. He emphasised the release is meant to understand market impacts and is not intended to discourage foreign listings in the US.

The Chair noted changes in the composition and structures of foreign issuers, including incorporation in jurisdictions (e.g. the Cayman Islands) that differ from a company’s headquarters or main operations, and said the SEC should reassess whether past rationales for accommodations still fit today’s market realities. He framed retrospective rule review as a key part of effective regulation.

Turning to the second panel, Atkins addressed retail investors’ access to private market assets. He announced that the SEC’s staff will no longer comment during registration on closed-end funds that invest 15% or more of assets in private funds being limited to accredited investors, effectively opening a pathway for broader retail access. He noted the dramatic growth in private fund assets (from $11.6 trillion to $30.9 trillion over the last decade) and supported efforts to “democratise” access, referencing the White House Executive Order. At the same time, he stressed a need for guardrails on issues such as liquidity, valuation, diversification, investment terms and fiduciary duties, and highlighted coordination with the Department of Labor.

He closed by thanking committee members, moderators, panelists and the Office of the Investor Advocate for their work.

Key Points

Chair Atkins welcomed the Investor Advisory Committee and UK FCA representatives to discuss foreign private issuers in US markets.
The SEC issued a June 2025 concept release to seek public input on updating FPI eligibility standards (e.g. minimum foreign trading volume or major foreign exchange listings).
The goal is to balance attracting foreign listings with protecting US investors and maintaining a level playing field.
Concerns highlighted around companies incorporating in jurisdictions (like the Cayman Islands) that differ from their operational or governance contexts.
Retrospective review of existing rules is presented as essential to ensure rules still meet policy goals.
The SEC directed staff to stop commenting on closed-end funds investing 15%+ in private funds being limited to accredited investors, opening potential retail access to private assets.
Private fund assets have grown substantially (about $11.6T to $30.9T in the last decade), prompting calls for broader access but also for strong investor protections.
Key regulatory priorities include liquidity, valuation, diversification, investment terms, fiduciary duties and coordination with the Department of Labor.

Why should I read this?

Short and to the point: if you manage investments, advise trustees, run funds, or simply invest, this matters. The SEC is actively rethinking who gets special treatment (foreign issuers) and who can get into private-market products (retail investors). That could mean new listing rules, different disclosure expectations, and wider access to private funds — plus a whole load of compliance and risk questions. Worth five minutes of your time if you want to stay ahead of policy shifts that could change market access and product design.