SEC Series 79 and 86/87 Notice: The Accredited Investor Pool Grows by Order

The SEC Is Moving to Treat Investment Bankers and Research Analysts as Accredited Investors

The SEC is considering an order that would make holders of the Series 79 investment banking license, and holders of the Series 86 and 87 research analyst licenses, accredited investors based on the credential alone. The Commission issued the notice, Release No. 33-11449, File No. 4-935, on September 30, 2026. It was published in the Federal Register on October 5, 2026 as a 'Notice; request for comment.'

But here is the part the headlines are missing. This is not a proposed rule. The SEC is not rewriting the accredited investor definition. It is using a mechanism it built into Rule 501(a)(10) in 2020, a designation order, to add credentials one at a time without a full rulemaking. That changes how fast the investor pool for private offerings can grow, and who decides.

Here is what happened, why it matters, and what founders and fund managers should do about it.

What the Notice Does, and What It Does Not Do

In August 2020, the SEC adopted Rule 501(a)(10) and, by a separate order (Release No. 33-10823), designated holders in good standing of the Series 7, Series 65 and Series 82 licenses as qualifying natural persons. The 2020 initial list did not include Series 79 or Series 86/87. Six years later, the Commission is revisiting that gap.

The Commission is considering whether to designate the Series 79, and the Series 86 and 87, each as an independently qualifying credential.

The status today

• Nothing has changed yet. No designation is effective unless and until the SEC issues an order after reviewing comments.
• There is no effective date. Any forecast of timing or outcome is speculation.
• The notice sets December 4, 2026 as the comment deadline (see the SEC's File No. 4-935 page).

The record is not unanimous. The notice says a number of 2020 commenters recommended adding Series 79 and/or Series 86/87, and one commenter specifically opposed adding Series 86/87.

The Distinction That Matters: An Order Is Not a Rule

Most coverage will file this under 'accredited investor reform.' That framing misses the mechanics, and the mechanics are the story.

A rule amendment changes the text of Regulation D. It requires a proposing release, an economic analysis, and a final adopting release. It is slow by design.

A Rule 501(a)(10) order leaves the text untouched. The rule already says the Commission may designate professional certifications, designations or credentials by order. The SEC publishes notice, takes comment, and then issues or declines to issue the order. The definition expands without the rule changing.

The message is unmistakable: in 2020, the SEC built a valve, and it is now opening it. The Series 79/86/87 notice is one of five notices issued September 30, 2026. The others cover a FINRA-developed accredited investor exam, the CPA license, the CFA charter, and CFP certification, all announced in SEC press release 2026-96 alongside proposals on adviser performance-based compensation and interval funds.

Read together, these notices are a coordinated expansion of the private-markets buyer base on a credential theory: that demonstrated financial knowledge, not only income or net worth, can justify access. The Series 79 question is narrow. The policy direction is not.

What This Means for Issuers and Private Fund Managers

The direct effect is easy to state. A professional who holds the Series 79 but not the Series 7, 65 or 82, and who does not meet the income or net worth tests, currently has no credential-based path to accredited status. If the order issues, that person qualifies on the license alone, as long as it stays in good standing.

For a founder raising a seed round or a manager raising a first fund, that has practical consequences:

• A deeper pool of informed angels. Some junior bankers and analysts who hold these licenses do not yet clear the income or net worth thresholds.
• Cleaner employee and affiliate participation. Advisers and sponsors with banking or research alumni on staff may gain a simpler basis for including them in co-invest vehicles.
• A new verification fact pattern. In a Rule 506(c) offering, confirming a license in good standing differs from reviewing tax returns or brokerage statements, and your subscription documents should be built to capture it.

The constraint is the phrase 'in good standing.' A license that lapses can take accredited status with it. That makes investor status a fact to confirm at closing rather than a permanent attribute, which matters for funds with rolling or multiple closes.

What Your Leadership Team Should Decide This Quarter

Nothing in the notice requires action today. The order may never issue. But firms that raise capital frequently should prepare now rather than retrofit later.

Decisions for founders, GPs and CCOs

First, decide whether to comment. If your investor base or team includes Series 79 or Series 86/87 holders, the record is open until the deadline. The SEC flagged a commenter opposed to Series 86/87; supportive, data-driven comments carry weight.

Second, refresh your investor questionnaire template. Plan to add a checkbox for any newly designated licenses, plus a representation that the license is in good standing as of the subscription date.

Third, map your verification process. For Rule 506(c) raises, decide in advance who confirms license status, what record they rely on, and how they document it.

Fourth, watch the companion notices. CPA, CFA and CFP designations, and a FINRA-developed exam, would reach far more people than Series 79 alone. Your offering documents should be designed to absorb several new categories at once.

• Assign an owner for tracking the five notices through December.
• Ask your general counsel or outside counsel to stage template changes so they can go live the day an order issues.