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.

Other related articles:

• H.R. 3818
• House Committee Votes on Hede Fund Registration

Bart Mallon, Esq. of Cole-Frieman & Mallon LLP runs Hedge Fund Law Blog and can be reached directly at 415-868-5345.