# SEC proposes higher small-entity thresholds for advisers and investment companies

> The SEC proposed increasing asset-based thresholds that define small investment advisers and investment companies for Regulatory Flexibility Act analysis, adding periodic inflation adjustments, and amending Form ADV and the continuing hardship exemption rule.

- URL: https://riadefi.com/regulation/2026-01-12-sec-small-adviser-investment-company-rfa-definitions/
- Posture: Proposal · not in effect
- Authorities: Securities and Exchange Commission
- Event date: 2026-01-12
- Version: 1, published 2026-08-07 (first published 2026-08-07)
- Advisor-relevant: no

This entry records a proposal. It does not change the law unless it is adopted.

## What changed

The SEC proposed increasing asset-based thresholds that define small investment advisers and investment companies for Regulatory Flexibility Act analysis, adding periodic inflation adjustments, and amending Form ADV and the continuing hardship exemption rule.

## Who it affects

- Smaller registered investment advisers and investment companies

## What is still open

- Whether the proposal will be adopted and the final thresholds and Form ADV changes

## What it means for an advisor

- Track the proposal but do not treat RFA small-entity status or filing procedures as changed.

## Sources

1. ["Small Business" and "Small Organization" Definitions for Investment Companies and Investment Advisers for Purposes of the Regulatory Flexibility Act](https://www.govinfo.gov/content/pkg/FR-2026-01-12/pdf/2026-00316.pdf) · Securities and Exchange Commission · 2026-01-12


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.