Summit debates widening accredited-investor access to alts

Financial Planning will host a free virtual summit on June 4 at noon ET to debate whether accredited investors should have wider access to private markets, private credit, private equity and crypto. The event will include three consecutive sessions on client education, the role of private markets in portfolios, and crypto’s place in allocations.

The first session, at 12 p.m. ET, will focus on educating clients about benefits and risks and will feature Michael Scarsciotti, senior vice president and head of investment specialists at Fidelity Investments, and Kevin Thompson, founder and CEO of 9i Capital Group. A second session at 12:55 p.m. ET will examine how advisors might position private markets in client portfolios with Toussaint Bailey, founder and managing partner of Uplifting Capital, and David Krakauer, vice president of portfolio management at Mercer Advisors. A final session at 1:50 p.m. ET will address crypto’s role in client allocations with Ric Edelman, founder of the Digital Assets Council of Financial Professionals.

The summit will consider whether the current accredited investor definition should be changed. Under Securities and Exchange Commission rules, individuals without industry credentials must have at least $1 million in assets excluding their primary residence or an annual income of $200,000 for single filers and $300,000 for married couples to qualify as accredited investors.

Some large wealth managers have begun offering private market products to smaller investors through self-directed brokerage accounts and other distribution channels. Supporters point to potential higher returns and portfolio diversification as reasons for broader access. Opponents and some advisors cite higher fees, added complexity and illiquidity as reasons to limit access.

Kevin Thompson, who runs a registered investment adviser firm in Fort Worth, expressed skepticism about expanding access to smaller investors and highlighted liquidity as his primary concern: “If somebody with half a million dollars comes to me and says, ‘What do you think about private credit and private equity?’ I have to say, ‘What can I do with half a million dollars? You want me to lock up your money for the next 10 years? It doesn’t make any sense.'”

The summit will also address recent instances in private credit where investors faced long delays or limits on withdrawals. Recent reporting identified roughly $5 billion that investors were waiting to access from private credit structures not designed for retail-style liquidity. Those episodes have raised questions about whether investors and advisors fully understood fund liquidity profiles when committing capital.

Policy changes are part of the discussion. The Department of Labor proposed rules that would make it easier to include private investments in 401(k) and other defined-contribution plans, prompting debate among plan sponsors, regulators and advisors about costs and risks for retirement savers.

Brian Wallheimer, Financial Planning’s editor-in-chief, described the summit’s goal as providing advisors with practical information to evaluate alternative investments for clients. The event is free and open to registered attendees; Financial Planning has posted the full agenda, registration details and background materials online.