SEC revises small-entity definitions

The U.S. Securities and Exchange Commission announced on 4 November 2026 that it had adopted changes to the definitions used to identify small entities under the Regulatory Flexibility Act. The amendments cover registered investment companies, investment advisers and business development companies. Their purpose is to reflect growth in the asset-management industry since the earlier thresholds were established.

The adopted changes raise asset-based thresholds, revise how related funds aggregate assets and remove the separate total-assets threshold for investment advisers. The framework also provides for inflation adjustments to asset-based thresholds every ten years by Commission order.

These definitions are used when the SEC analyses the effects of rulemaking on smaller market participants. They should be understood in that regulatory-analysis context rather than as a measure of investment quality, safety or expected returns. The agency said the adopting release is available on its website and will also appear in the Federal Register.

Source: SEC release 2026-112, published 4 November 2026; verified 9 November 2026.