PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

H.R. 5424: Investment Advisers Modernization Act of 2016

By at 2 September, 2016, 10:26 am

UPDATE:  On September 9, 2016 the Investment Advisers Modernization Act of 2016, H.R. 5424, passed the U.S. House by a vote of 261-145.

 

The Honorable Robert Hurt

U.S. House of Representatives

Washington, DC 20515

 

The Honorable Juan Vargas

U.S. House of Representatives

Washington, DC 20515

 

Dear Representatives Hurt and Vargas:

On behalf of the 100,000 members of the Small Business & Entrepreneurship Council (SBE Council), I am pleased to support H.R. 5424, the Investment Advisers Modernization Act of 2016. H.R. 5424 makes several important improvements to the Investment Advisers Act (IAA) to reduce redundant and needless red tape, which will encourage capital access and more investment in our nation’s small businesses.  SBE Council is urging every member of the U.S. House to support this practical measure.

H.R. 5424 modernizes provisions of existing law, such as exempting investment advisers from outdated advertising restrictions while still maintaining antifraud protections. The bill also removes a duplicative requirement on client notifications with regard to partnership management, and updates private equity investment forms to reduce the reporting of needless information. These reforms will promote efficiency and reduce red tape. H.R. 5424 also prevents regulatory mismatch and adventurism by the Securities and Exchange Commission (SEC) with respect to private funds, which means there will be less confusion, overlap and uncertainty. Separately and taken together, the provisions within H.R. 5424 will encourage needed capital formation.

Thank you for your leadership on this important issue. Please let SBE Council know how we can help advance H.R. 5424 into law.

Sincerely,

Karen Kerrigan, President and CEO

cc: Members of the U.S. House of Representatives

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