American Investment Council Applauds Investment Advisers Modernization Act
WASHINGTON – A bipartisan group of legislators introduced the Investment Advisers Modernization Act of 2016. Cosponsored by House Financial Services Committee members Robert Hurt (R-VA), Juan…
WASHINGTON – A bipartisan group of legislators introduced the Investment Advisers Modernization Act of 2016. Cosponsored by House Financial Services Committee members Robert Hurt (R-VA), Juan Vargas (D-CA), Steve Stivers (R-OH), and Bill Foster (D-IL), the new legislation modernizes aspects of the Investment Advisers Act, removes ill-fitting or duplicative burdens, addresses practical concerns with the statute, and helps ensure robust capital formation.
“We strongly support the bipartisan Investment Advisers Modernization Act,” said American Investment Council (AIC) President and CEO Mike Sommers. “These common-sense, thoughtful modifications show a commitment to improving the regulatory structure for private funds and investors. We look forward to seeing this bill advance.”
Notable updates to the Investment Advisers Act include adjusting books and records requirements to provide advisers with a set of guidelines that can be easily interpreted and appropriately set, updating Form PF so that private equity investment advisers do not have to provide unnecessary information on their portfolio companies, and preventing the SEC from expanding Rule 156 relating to the advertising of investment company funds to private fund offerings.
“Since the Investment Advisers Act was established in 1940, there have been fundamental developments in the investment advisory industry,” said AIC General Counsel Jason Mulvihill. “Changes such as modernizing the Investment Advisers Act language and oversight makes this legislation a positive step towards a regulatory framework balances efficiency with effectiveness for both regulated entities and the regulators.”
To read AIC President and CEO Mike Sommers’ full statement on the legislation, click here.
About the American Investment Council
The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at www.investmentcouncil.org.