This week, the Private Fund Investment Advisors Registration Act (H.R. 3818) was approved by House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, and will move on to a vote by the full House. As we reported in our October 6, 2009 post, "Rep. Kanjorski Releases Legislative Discussion Drafts," the Committee has been considering three key pieces of financial oversight reform legislation, including H.R. 3818. As we described in our earlier post, this bill would:
require many previously virtually unregulated financial firms, such as hedge funds and private equity funds, to register with the SEC. This bill also proposes to give regulators inspection and enforcement authority over all kinds of investment funds, and would impose disclosure and recordkeeping requirements on hedge funds and private equity funds.
The Private Fund Investment Advisors Registration Act passed the Committee's vote with only one vote against cast by Rep. Ron Paul (R-TX), and enjoys much support in the House. The direction of Senate vote on that chamber's version of the bill is less certain, but it is almost certain to reach a vote as part of the package of reform bills presented to the Senate by the Administration, and proposed by Senator Jack Reed (D-RI).
The full text of the amended H.R. 3818 is not yet available, but Rep. Kanjorski's discussion draft is available at: http://www.house.gov/apps/list/press/financialsvcs_dem/discussion_draft_of_the_private_fund_investment_advisors_registration_act.pdf