newsfilter
← Latest News
SEC Press Releases·

SEC Adopts Amendments to Update Definitions of Small Entity for Investment Companies and Investment Advisers

  • The SEC adopted amendments on Nov. 4, 2026, to update the definition of small entities under the Regulatory Flexibility Act for investment companies, investment advisers, & business development companies.
  • The changes recognize substantial growth in the asset management industry over the past 30 years to ensure RFA analyses capture a more meaningful population of small entities.
  • SEC Chairman Paul S. Atkins stated the updates aim to eliminate unnecessary regulatory burdens & modernize the rulebook to reflect current market realities.
  • Specific amendments increase asset-based thresholds for small entity designation & eliminate the previous total assets threshold for investment advisers.
  • The rules now update how assets of related funds are aggregated & provide for inflation adjustments to asset-based thresholds every 10 years.
  • The goal of these changes is to minimize the significant economic impact of SEC rules on small market participants.
  • The adopting release is available on the SEC website & will be published in the Federal Register.