On December 4, 2013, the House of Representatives passed a bill that would exempt most private equity fund advisers from registering with the SEC. The bill would create an exemption to the registration requirements of the Advisers Act for investment advisers to private equity 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. The bill directs the SEC to enact final rules addressing reporting and recordkeeping requirements for exempt advisers and defining the term “private equity fund.” The Senate has not proposed a companion bill. The Executive Office of the President issued a Statement of Administration Policy stating that “if the President were presented with H.R. 1105, his senior advisors would recommend that he veto the bill.”

Sources: H.R. 1105, Small Business Capital Access and Job Preservation Act (November 22, 2013); House Passes Bill Exempting Private Advisers from Registration, Bloomberg Securities Regulation & Law Report (December 9, 2013); Statement of Administration Policy, Executive Office of the President (December 3, 2013).