As we step into 2026, the investment landscape is undergoing a profound transformation. The convergence of private fund expansion, global regulatory evolution, and the operationalization of artificial intelligence (AI) is reshaping how firms operate, communicate, and compete. Investment companies are navigating a landscape shaped by the continued rapid rise of private funds, evolving global regulations, the SEC’s evolving opinion on crypto, the elimination or compliance delays of existing SEC regulations, and the accelerating adoption of AI. This year’s outlook identifies five strategic imperatives that will define not only the year ahead but also the trajectory of the industry for years to come.
The Rise of Private Funds: Investor Access Meets Scale
Private funds are no longer the exclusive domain of institutional investors and ultra-high-net-worth individuals. Retail access is expanding rapidly through interval funds, ETFs, retirement vehicles, and digital platforms. This democratization is driving innovation, but also introducing new layers of complexity.
Firms are navigating trade-offs between liquidity and customization while simultaneously investing in advisor education and digital enablement. Regulatory scrutiny is intensifying, particularly around transparency and valuation practices. As structures evolve faster than the rules that govern them, investor protection remains a central concern. We anticipate future regulations aimed at ensuring clarity and fairness in this expanding segment.
“The key word here is diversification, and so we have to put in guardrails for retail investors to have exposure to these sorts of investments because they can be illiquid, the valuations can be off," said Paul Atkins, SEC Chairman.1
Global Regulatory Threads: Convergence and Complexity
Following the rollout of Tailored Shareholder Reports (TSR) in the U.S., similar mandates are emerging globally. Canada’s Fund Report and Total Cost Reporting (TCR) — now formalized by both Canadian and European regulators — are just the beginning. Firms must now manage a patchwork of jurisdictional rules while maintaining operational efficiency and investor trust.
The regulatory focus is shifting toward structured data formats like iXBRL and new XML schemas, driven by the Financial Data Transparency Act (FDTA). Accessibility standards — ADA in the U.S., AODA in Canada, and EAA in the EU — are converging, creating a global imperative for inclusive design and delivery.
DFIN alone tags over 300,000 ADA-compliant pages annually, underscoring the scale of this transformation. The demand for global compliance and data partners is rising sharply, and firms must be prepared to meet it.
Regulatory Uncertainty: The SEC’s Shifting Priorities
The SEC’s agenda remains fluid, with several high-impact proposals still in limbo. From ESG disclosures to crypto oversight and security enhancements like EDGAR Next, firms must prepare for multiple regulatory scenarios.
We’re watching closely for modifications or delays to rules such as Fund Names, Short Activity Reporting (Form SHO) and N-PORT Filing Frequency. ESG-related requirements have been de-emphasized and may be eliminated altogether. Meanwhile, litigation around private fund rules continues to unfold, and security reforms — particularly around filer access — are gaining traction.
This uncertainty demands agility. Firms must build flexible compliance frameworks that can adapt to shifting priorities without compromising transparency or investor confidence.
Benchmarking in a Hybrid World
As private strategies blend with traditional ’40 Act structures, performance measurement becomes increasingly complex. The lack of standardized benchmarks for private market exposure creates strategic ambiguity and transparency risks.
Innovation in custom benchmarks and peer group analytics is accelerating. Firms are seeking third-party validation to ensure credibility and comparability. A key enabler of this modernization is the integration of Regulatory Book of Record (RBOR) frameworks. An RBOR establishes a centralized data source for investment and regulatory records, giving firms a dashboard view of all filings and enabling a more efficient cost model for middle- and back-office operations. This foundational system helps firms streamline reporting, enhance transparency, and align performance metrics across diverse investment structures.
AI in Action: From Compliance to Communication
AI is no longer a buzzword, it’s a business imperative. From automating disclosures to enhancing investor communications, AI is quietly transforming fund operations. The focus is shifting from experimentation to enterprise-wide enablement.
Emerging use cases include predictive analytics for compliance risk, real-time reporting, and AI-assisted content generation. Straight-through processing and automated review workflows are becoming standard. However, as firms scale AI across compliance and marketing functions, the importance of robust security protocols cannot be overstated. Protecting sensitive data, ensuring model integrity, and maintaining auditability are essential to building trust and meeting regulatory expectations. Firms that embrace AI holistically — while embedding security at every layer — will gain a competitive edge in both efficiency and engagement.
Top 5 Things to Watch in 2026
- Private funds and alternative investments expand into the retail markets
- AI’s operationalization across compliance and marketing
- Global convergence of accessibility and disclosure mandates
- Establishment of a regulatory framework for crypto asset distribution
- Benchmarking innovation in the private funds space
Looking Ahead: Navigating Complexity With Confidence
2026 is not just another year of change, it’s a year of convergence. The rise of private funds, the global harmonization of regulatory mandates, and the operationalization of AI are not isolated trends. They are interconnected forces reshaping the very foundation of how investment companies operate, communicate, and grow.
As we move forward, firms must embrace agility, invest in scalable technologies, and foster a culture of compliance and innovation. The ability to benchmark effectively, deliver accessible and transparent disclosures, and respond to regulatory shifts will define market leaders.
At DFIN, we remain committed to helping our clients navigate this complexity with confidence. Whether it's through smarter data, deeper insights, automated workflows or more intuitive platforms, our goal is to empower investment companies to thrive in a world where change is constant, and opportunity is everywhere.
1. Revell, E. (2025, September 23). SEC chair wants private market investments available for Americans’ 401(k) plans. Fox Business. https://www.foxbusiness.com/markets/sec-chair-wants-private-market-investments-available-americans-401k-plans
