Advisors Cautiously Welcome US Accredited Investor Rule Change

Tom Burroughes

26 June 2025

The US House of Representatives has passed a bill this week that directs the , said of the change. (CAIA stands for Chartered Alternative Investment Analyst.)

“This is an evolution for which CAIA Association has advocated for almost a decade. However, these new thresholds must be comprehensive and rigorous and explicitly designed to teach private markets vs generalist programs. Private markets are inherently complex and opaque, and any new educational criteria must ensure that investors are equipped with the tools to assess risk and investment managers properly, align with long-term objectives, and uphold the fiduciary standards this space demands.”

The change comes at a time when a host of wealth and asset managers have been calling for wider access by HNW, mass-affluent and even retail investors into sectors that typically are less liquid than listed equities and bonds, but with the promise of higher long-term returns. This is not uncontroversial, as US correspondent Charles Paikert writes in this separate feature article today.

“Whatever your views on the current accredited investor rules, they exist for a reason. Private investments come with levels of complexity that require due diligence far different from that needed to navigate the public markets and 40-Act world. When it comes to alternative investments, access does not always equal quality. Research and the guidance of trusted partners will be even more crucial as more doors to alts are opened,” Martin Gross, founder and president, will lead to increased inquiries and questions from clients – wealth managers will need to become more informed on private markets and be able to articulate the benefits, risks, and appropriateness for client situations. In some cases, these investments may not be appropriate at all, and wealth managers will need to clearly explain why that's the case,” he added.

(If you wish to comment on this article or contact the editor, email tom.burroughes@wealthbriefing.com.)