Private Investment Advisers Registration Act is Passed by House Committee on Financial Services

October 28, 2009

The Financial Services Committee of the U.S. House of Representatives passed H.R. 3818, the Private Fund Investment Advisers Registration Act, which requires advisers to private funds to register with the U.S. Securities and Exchange Commission (“SEC”).

The Wall Street Journal reported that the Committee agreed that private funds managing less than $150 million would be exempt from the SEC registration requirement. The WSJ noted that small business investment companies (“SBICs”) subject to the oversight of the U.S. Small Business Administration along with venture capital fund managers will be exempted from SEC registration. However, it appears that private equity funds and single family offices will be required to register with the SEC in the bill passed by the Financial Services Committee. MarketWatch reported that Rep. Susan Kosmas explained that this bill includes a one-year transition period before registration with the SEC is mandatory for private funds.

The next stop for H.R. 3818 is the floor of the U.S. House of Representatives. RIA Compliance Consultants will continue to keep readers abreast of the status of the bill in the House and its counterpart in the Senate.

Posted by Bryan Hill
Labels: Hedge Funds, How to Become RIA, Investment Advisor Registration, Registration