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Recent Editions
Risk Channel
North America
The Securities and Exchange Commission (SEC) has proposed regulatory changes aimed at expanding retail investor access to private assets, including private equity, private credit, real estate, and venture capital. The proposals could allow more professionals, including accountants, financial analysts, financial planners, investment banking license holders, and research analysts, to qualify as accredited investors. The SEC also proposed changes that would give investment advisers greater flexibility to charge performance fees and allow closed-end funds to offer monthly share redemptions and additional share classes. SEC Chair Paul Atkins said investment opportunities should not be restricted solely to wealthy or highly sophisticated investors, while acknowledging the risks associated with private markets. Industry groups welcomed the proposals as a way to broaden investor choice, while critics warned that private assets can be difficult to value, less liquid, and subject to complex fees. Some financial advisers also cautioned that performance-based compensation could encourage greater risk-taking. The proposals will undergo a public comment period before the SEC decides whether to adopt them.
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Risk Channel
UK/Europe
UK lender NatWest faces allegations from Philip Adkins, the former CEO of shipping company Red Box Energy Services, who claims Coutts, its private bank, closed his account based on incorrect financial information. Adkins's lawyers assert that Coutts misrepresented his wealth at £62m and falsely said he had dealings with Goldman Sachs. He has launched a data-protection claim, saying the inaccuracies had prompted a US Department of Justice investigation into his finances. Adkins claims that "false" Coutts records caused him "serious distress."
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