How a 2020 SEC Rule Change Unlocked $800 Million for Wall Street—and Your Portfolio

Washington D.C., Tuesday, 23 June 2026.
A quiet 2020 SEC regulation let wealth managers rake in $796 million in fees by selling private credit to retail investors—previously off-limits to all but institutions. Now, $80 billion in private credit funds sit in portfolios, with brokers pocketing over $1 billion in hidden commissions. The catch? Investors in fee-heavy share classes earned up to 25% less than those in lower-cost options.