As has been reported by a number of groups the Private Fund Investment Advisors Act of 2009 was approved by the House Financial Services Committee by a vote of 67-1. The proposed bill underwent a number of significant changes during the committee meeting. The attached document shows (in redline format) the changes which were made to the bill during the committee meeting. I compiled this “new” text of H.R. 3818 by making the changes as introduced by various committee members, see markups.
The major changes include:
- a provision which exempts managers from registration if the managers only provide investment advice to SBICs (introduced by Mrs. Capito and Mr. Paulsen)
- a provision which exempts managers from registration if the managers have less than $150 million of AUM (introduced by Mr. Peters, Mr. Meeks, and Mr. Garrett)
- a provision which directs the SEC to take into account certain factors when promulgating regulations which apply to advisers to “mid-sized” private funds (introduced by Mr. Peters, Mr. Meeks, and Mr. Garrett)
Please also see Doug Cornelius’ article on the changes to the bill.
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Bart Mallon, Esq. of Cole-Frieman & Mallon LLP runs Hedge Fund Law Blog and can be reached directly at 415-868-5345.