HR 1082 RH

To amend the Investment Advisers Act of 1940 to provide a registration exemption for private equity fund advisers, and for other purposes.

March 15, 2011

Mr. HURT (for himself and Mr. COOPER) introduced the following bill; which was referred to the Committee on Financial Services

July 12, 2011

Additional sponsors: Mrs. BIGGERT, Mr. STIVERS, Mr. BACHUS, Mr. COFFMAN of Colorado, Mr. LATOURETTE, Mr. GARRETT, Mr. MANZULLO, Mr. NUNNELEE, and Mr. ROSS of Arkansas

July 12, 2011

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

To amend the Investment Advisers Act of 1940 to provide a registration exemption for private equity fund advisers, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

[Struck out->] SECTION 1. SHORT TITLE. [<-Struck out]

[Struck out->] This Act may be cited as the ‘Small Business Capital Access and Job Preservation Act’. [<-Struck out]

[Struck out->] SEC. 2. REGISTRATION AND REPORTING EXEMPTIONS RELATING TO PRIVATE EQUITY FUNDS ADVISORS. [<-Struck out]

[Struck out->] Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3) is amended by adding at the end the following: [<-Struck out]

[Struck out->]

‘(o) Exemption of and Reporting Requirements by Private Equity Funds Advisors- [<-Struck out]

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‘(1) IN GENERAL- Except as provided in this subsection, no investment adviser shall be subject to the registration or reporting requirements of this title with respect to the provision of investment advice relating to a private equity fund or funds. [<-Struck out]

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‘(2) MAINTENANCE OF RECORDS AND ACCESS BY COMMISSION- Not later than 6 months after the date of enactment of this subsection, the Commission shall issue final rules-- [<-Struck out]

[Struck out->]

‘(A) to require investment advisers described in paragraph (1) to maintain such records and provide to the Commission such annual or other reports as the Commission taking into account fund size, governance, investment strategy, risk, and other factors, as the Commission determines necessary and appropriate in the public interest and for the protection of investors; and [<-Struck out]

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‘(B) to define the term ‘private equity fund’ for purposes of this subsection.’. [<-Struck out]

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Small Business Capital Access and Job Preservation Act’.

SEC. 2. REGISTRATION AND REPORTING EXEMPTIONS RELATING TO PRIVATE EQUITY FUNDS ADVISORS.

Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3) is amended by adding at the end the following:

‘(o) Exemption of and Reporting Requirements by Private Equity Funds Advisors-

‘(1) IN GENERAL- Except as provided in this subsection, no investment adviser shall be subject to the registration or reporting requirements of this title with respect to the provision of investment advice relating to a private equity fund or funds, provided that each such fund has not borrowed and does not have outstanding a principal amount in excess of twice its invested capital commitments.

‘(2) MAINTENANCE OF RECORDS AND ACCESS BY COMMISSION- Not later than 6 months after the date of enactment of this subsection, the Commission shall issue final rules--

‘(A) to require investment advisers described in paragraph (1) to maintain such records and provide to the Commission such annual or other reports as the Commission taking into account fund size, governance, investment strategy, risk, and other factors, as the Commission determines necessary and appropriate in the public interest and for the protection of investors; and

‘(B) to define the term ‘private equity fund’ for purposes of this subsection.’.

Union Calendar No. 91

To amend the Investment Advisers Act of 1940 to provide a registration exemption for private equity fund advisers, and for other purposes.

July 12, 2011