One Billion Dollar AUM Threshold Proposed for Federal RIA Status

On January 7, 2026, the Securities and Exchange Commission (the "Commission" or the "SEC") proposed to amend the rules under the Investment Advisers Act of 1940 (the "Advisers Act") that define the terms "small business" and "small organization" to increase the asset-based threshold used in that definition.

The proposal would increase the assets under management threshold under which an investment adviser is considered to be a small entity to $1 billion. The Commission also proposed inflation adjustments by order every 10 years.

Other items were included in the proposal, which can be seen HERE

The Commission also proposed inflation adjustments by order every 10 years.

The Commission's proposal is 87 pages long. SEC is requesting comments during a 60-day comment period.