New Bill Requires SEC Registration for Real Estate Investment Advisers
The House of Representatives is considering a bill that requires advisers of certain unregistered investment companies to register with and provide information to the Securities and Exchange Commission (SEC). The bill will apply to major real estate investment firms, as well as private equity houses and hedge funds, with more than $30m in assets under management, according to analytics provider, the Private Equity Council. The Private Fund Investment Advisers Registration Act of 2009, introduced by Rep. Paul Kanjorski (D-PA), would amend the Investment Advisers Act of 1940 and would require advisers to disclose to the commission the amount of assets under management, the use of leverage, counterparty credit risk exposure, trading and investment positions, trading practices and any other information the commission determines is necessary “for the protection of investors or for the assessment of systemic risk.” The bill has a confidentiality clause that protects the investment companies’ proprietary information. It also provides an exemption from registration for venture capital fund advisers. Investment advisers are the latest the possibility of federally mandated registration. A Senate bill introduced in June called for similar regulations on investment advisers. Under the recently passed federal Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act, requires all states have a loan originator registration system. Write to Austin Kilgore.