Last week, investment advisers achieved a victory in their efforts to roll back the regulatory excesses of the Dodd-Frank Act.
On Dec. 4, President Obama signed into law the SBIC Advisers Relief Act, which revises language in Dodd-Frank to reduce the law’s unnecessary compliance burden for managers of small business investment companies, or SBICs.
The bill, known as H.R. 432, was included as part of the larger multi-year highway transportation legislation.
The SBIC Advisers Relief Act will remedy the unintended consequences of the Dodd-Frank Act for investment advisers that are advising SBICs. Notably, the law will preempt any state registration requirements for advisers solely advising SBIC funds. It will also allow advisers to venture capital funds to continue to be classified as “exempt reporting advisers” should they also advise an SBIC fund.
For advisers that advise private funds—in addition to SBIC funds—the legislation will prevent the assets of their SBIC fund from being included in the SEC registration calculation of assets under management.
ACG has supported the effort behind this bill through letters authored by a coalition of likeminded organizations, including the Small Business Investor Alliance, the U.S. Chamber of Commerce and others.
ACG leaders applaud the SBIA for its leadership on this important bill on behalf of small and midsize advisers. The association looks forward to exploring opportunities for additional regulatory relief for middle-market private equity firms, said Amber Landis, ACG Global vice president of public policy.