BeInCrypto • October 11th 2026, 8:03 PM
New Accredited Investor Exam Could Bring Private Markets to Retail Investors
Key Summary
The SEC has proposed an accredited investor exam to allow Americans without $1 million in net worth or a $200,000 salary to invest in private companies, a move that could open up the private markets to retail investors. The exam, to be administered by FINRA, would test investment risks and financial knowledge. The proposal is part of the SEC's push to open private markets to retail savers, alongside a proposal to let more funds charge performance fees.
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Background of Accredited Investor Exam
The SEC has proposed an accredited investor exam to allow Americans without $1 million in net worth or a $200,000 salary to invest in private companies. The exam, to be administered by FINRA, would test investment risks and financial knowledge. The proposal is part of the SEC's push to open private markets to retail savers, alongside a proposal to let more funds charge performance fees.Current Accredited Investor Tests
Currently, wealth decides who counts as an accredited investor. Only those with $1 million in net worth or a $200,000 salary can buy into most startups and private funds before those companies list on a stock exchange. The Financial Industry Regulatory Authority (FINRA) would build the test, according to the SEC's notice. Anyone aged 18 or older could sit it. Candidates would get about two hours for roughly 75 multiple-choice questions, taken in person only. The fee would likely match FINRA's entry-level broker exam, currently $100. A pass would stay valid for 10 years.Proposed Exam Changes
The SEC is also asking whether certified public accountants (CPAs), Chartered Financial Analyst (CFA) charter-holders, and Certified Financial Planner (CFP) professionals should qualify automatically. The proposed exam would test investment risks, financial statements, conflicts of interest, and corporate governance. Investment risks would carry the most weight, at 20% to 28% of the test.Industry Reaction
Crypto firms are already moving towards the private market. MoonPay agreed in September to buy North Capital, a Utah broker handling private stock deals. However, not everyone sees the exam as the answer. SEC Commissioner Hester Peirce backs looser rules but said a test still casts the government as gatekeeper, according to law firm Mayer Brown. Crypto firms are also pushing for looser rules. Noah Damsky, a principal at Marina Wealth Advisors, called the exam idea 'horrible' in comments to Financial Planning. He argued many private-market products fit ordinary investors poorly. The timing has also drawn scrutiny. Money raised by private funds is on track to fall for a fifth straight year, according to PitchBook data.#SEC#PrivateMarkets#RetailInvestors#USA