PrintAt the end of October, the House Financial Services Committee moved forward on two of the topics previously tracked by this blog, and introduced a third into the discussion.
On the 27th, the Committee approved H.R. 3818, the Private Fund Investment Advisers Registration Act, which requires advisors to private pools of capital to register with the SEC, and subjects them to new recordkeeping and disclosure requirements. The bill, a derivative of the proposed legislation submitted by the administration in July and discussed in a posting at that time, was introduced by Representative Paul Kanjorski on October 15. The markup draft does incorporate several material changes from the earlier proposal.
The next day the Committee approved H.R. 3890, the Accountability and Transparency in Rating Agencies Act. This bill was also introduced by representative Kanjorski based on the administration’s proposed Improvements to Regulation the of Credit Rating Agencies that was discussed in this earlier post.
Both of these bills received strong bipartisan support in the Committee. Going forward, their progress can be tracked on the widgets to the left.
On the 27th, the Committee also began considering the Financial Stability Improvement Act, their version of an administration proposal to require financial firms, including hedge funds, with more than $10 billion in assets to cover the cost if the government takes over financial institutions whose failure could pose a systemic risk. This bill is a compromise worked out between the Treasury Department and Committee Chairman Barney Frank.
All three of these developments and their potential impacts on the hedge fund industry will be discussed in greater detail in upcoming posts in our InDepth Section.
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