Us Congress 2023-2024 Regular Session

Us Congress House Bill HB9148

Introduced
7/25/24  

Caption

Tailoring for Main Street’s Investors Act

Impact

The bill's modification of registration requirements has significant implications for smaller investment advisers, potentially reducing their regulatory burden. The exemption is intended to promote financial growth within local communities by enabling smaller firms to operate without the extensive compliance obligations that typically accompany SEC registration. This change might encourage more investment activities tailored specifically for local markets, thereby invigorating economic development at the grassroots level. However, there is a concern that less regulatory oversight could pose risks to investors, particularly those who may not fully understand the complexities of fund performance without rigorous disclosures.

Summary

House Bill 9148, titled the 'Tailoring for Main Street’s Investors Act,' seeks to amend the Investment Advisers Act of 1940. The primary goal of the bill is to provide an exemption from registration requirements for certain advisers representing private funds. Investment advisers whose assets under management do not exceed $5 billion and that only serve qualified purchasers or accredited investors will no longer be required to register with the Securities and Exchange Commission (SEC). This aims to simplify processes for smaller investment firms and facilitate easier access for investors at a more local level.

Contention

A notable point of contention with HB 9148 revolves around the perceived dilution of investor protections. Critics argue that providing exemptions for certain investment advisers could lead to lesser accountability and transparency, increasing risks for unsophisticated investors. Detractors worry that such changes favor the interests of larger investment firms and may undermine the SEC's ability to oversee the market effectively. They contend that the intended small business support may inadvertently create loopholes that unscrupulous entities could exploit, thus harming the very investors the bill aims to protect.

Companion Bills

No companion bills found.

Previously Filed As

US HB4129

Tailoring for Main Street’s Investors Act

US HB1807

Improving Disclosure for Investors Act of 2023

US HB2441

Improving Disclosure for Investors Act of 2025

US SB1877

Improving Disclosure for Investors Act of 2025

US HB7168

Investor Choice Act of 2024

US HB4600

Protecting Retail Investors’ Savings Act

US HB9162

PRC Risk Transparency Act

US HB3339

Equal Opportunity for All Investors Act of 2025

US SB3715

Investor Choice Act of 2024

US SB3815

Improving Disclosure for Investors Act of 2024

Similar Bills

No similar bills found.