House Financial Services Committee Votes to Raise Assets Under Management for SEC Registration as Investment Adviser from $25 Million to $100 Million

October 29, 2009

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Investment News is reporting that the Financial Services Committee of the U.S. House of Representatives passed today an amendment to the Investor Protection Act, H.R. 3817, whereby the general assets under management requirement to register with the U.S. Securities and Exchange Commission (“SEC”) as an investment adviser would increase from $25 million to $100 million.

This proposed change to the current regulatory structure would make state securities regulators the primary regulator for registered investment advisers with less than one hundred million dollars ($100,000,000) of assets under management (assuming the adviser didn’t qualify for exemption to the general AUM requirement). Investment News is also reporting that the Committee passed an amendment to H.R. 3817 authorizing a study of whether investment advisers should be subject to self-regulatory organization.

However, what’s unclear is whether the Investor Protection Act, H.R. 3817, has been advanced out of the Financial Services Committee. As of Wednesday evening, it appears the bill is still in mark-up since the website for the Financial Services Committee does not indicate that the Investor Protection Act has been passed by the Committee.

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