To amend the Investment Advisers Act of 1940 to increase the exemption from registration threshold for certain investment advisers of private funds to reflect the change in inflation.
Sponsors
Legislative Progress
ReportedReported with an amendment, committed to the Committee of the …
Mr. Barr (for himself and Ms. Velázquez) introduced the following …
Summary
What This Bill Does
This bill, titled the "Small Business Investor Capital Access Act," raises the threshold at which investment advisers to private funds must register with the Securities and Exchange Commission (SEC). Currently, advisers managing less than $150 million in assets are exempt from registration. The bill adjusts this threshold for inflation since 2010 and requires annual inflation adjustments going forward.
Who Benefits and How
Small and mid-sized investment advisers to private funds - including venture capital firms, private equity managers, and hedge fund managers - benefit from this change. Advisers currently just above the $150 million threshold who would fall below the inflation-adjusted amount will no longer need to register with the SEC, saving them significant compliance costs including filing fees, regulatory reporting requirements, and administrative overhead. This particularly helps smaller fund managers compete by reducing their regulatory burden.
Who Bears the Burden and How
The SEC takes on the administrative task of calculating and publishing annual inflation adjustments to the threshold. Investors in private funds may face reduced regulatory oversight of some investment advisers who no longer need to register. The bill does not impose new taxes or direct costs on taxpayers.
Key Provisions
- Adjusts the $150 million registration exemption threshold to reflect inflation since the Private Fund Investment Advisers Registration Act of 2010 was enacted
- Requires the SEC to use the Consumer Price Index for All Urban Consumers (CPI-U) published by the Bureau of Labor Statistics to calculate adjustments
- Mandates annual inflation adjustments to keep the threshold current going forward
- Amends Section 203(m) of the Investment Advisers Act of 1940
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Adjusts the SEC registration exemption threshold for investment advisers of private funds to account for inflation since 2010
Policy Domains
Legislative Strategy
"Reduce regulatory burden on smaller investment advisers by raising the registration exemption threshold to account for 14+ years of inflation"
Likely Beneficiaries
- Small and mid-sized investment advisers to private funds (venture capital, private equity, hedge funds)
- Private fund managers currently just above the $150M threshold
Likely Burden Bearers
- SEC (administrative burden of calculating and publishing annual adjustments)
- Investors (potentially reduced regulatory oversight of some advisers)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_commission"
- → Securities and Exchange Commission (SEC)
Key Definitions
Terms defined in this bill
The period from the enactment of the Private Fund Investment Advisers Registration Act of 2010 to the present
The dollar amount under which investment advisers of private funds are exempt from SEC registration (currently $150 million in assets under management)
The CPI-U published by the Bureau of Labor Statistics, used to measure inflation
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology