H.R. 3673: Small Business Investor Capital Access Act

This bill, known as the Small Business Investor Capital Access Act, proposes modifications to the Investment Advisers Act of 1940, specifically regarding the registration requirements for certain investment advisers who manage private funds. The main objective of the bill is to increase the threshold amount that privately advising investment firms can manage without needing to register with the Securities and Exchange Commission (SEC), reflecting inflationary changes over time.

Key Provisions of the Bill

The bill contains the following significant provisions:

• Adjustment of Exemption Threshold: It allows for the dollar amount that determines whether investment advisers need to register to be adjusted for inflation.
• Consumer Price Index Reference: The inflation adjustments would be based on changes in the Consumer Price Index for All Urban Consumers, as reported by the Bureau of Labor Statistics.
• Initial Adjustment: Upon the enactment of this bill, the adjustment will be made to account for inflation since the implementation of the Private Fund Investment Advisers Registration Act of 2010.
• Annual Adjustments: There will also be annual adjustments to the exemption threshold to keep pace with inflation moving forward.

Impact on Small Businesses

The bill is designed to ease certain regulatory burdens on small investment advisory firms, potentially allowing them to operate without the same level of regulatory oversight that larger firms face. This could encourage small business growth in the financial services industry by making it easier for them to attract investment and manage funds without the need to register with the SEC.

Additional Details

The changes are aimed specifically at firms that deal with private funds, which can include a range of investment vehicles such as hedge funds and private equity funds. By raising the exemption threshold, the bill seeks to provide more flexibility and access to capital for small investment advisers.

Relevant Companies

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