SEC Raises Small Entity Thresholds for Funds and Advisers

What happened

On Nov. 4, 2026, the Securities and Exchange Commission voted to change how it decides which registered funds, advisers, as well as business development companies are small for Regulatory Flexibility Act purposes ^[1]. Atkins noted that the definition had gone untouched in nearly 30 years ^[1].

Under the change, a fund may hold up to $10 billion in net assets, up from $50 million, and still be counted as small ^[2]. For advisers, the assets under management line moves from $25 million to $1 billion, and a separate adviser total assets test is dropped ^[2].

How it affects Americans

The RFA asks agencies to weigh how hard federal rules land on small players and to consider alternatives ^[1]. Our read: a wider small category means more firms should get that extra scrutiny in future rulemaking, which could shape costs that flow through to everyday savers. SEC Chairman Paul S. Atkins said the update "is an important step to eliminate unnecessary regulatory burdens and modernize our rulebook" ^[1].

The Veil Press view

The agency points to large growth in asset management since the original cutoffs were set ^[1]. Our read: thresholds frozen for decades had quietly shrunk the group of firms the law was meant to protect, so a reset was overdue. To keep the lines from going stale again, the SEC will adjust them for inflation by order every 10 years ^[1].

What we know

Confirmed

• The method for combining the assets of related funds when judging size is being updated ^[1].
• Advisers will no longer face a total assets threshold in the definition ^[1].
• The amendments take effect 90 days after the adopting release appears in the Federal Register ^[2].

Still being reported

• The SEC has posted the adopting release online, and it has yet to run in the Federal Register, so the effective date is not set ^[1].