Legislation Requiring Private Fund Adviser Registration Moves Forward

November 22, 2009
Congressman Paul Kanjorski (D-PA), Chairman of the Capital Markets Subcommittee of the House Financial Services Committee, recently proposed legislation that would require investment advisers to certain pooled investment vehicles, including hedge funds and private equity funds, to register with the SEC, while providing an exemption for investment advisers to venture capital funds, certain small private funds and small business investment companies. The Kanjorski bill, which is similar to legislation proposed by the Obama Administration, has progressed further than other bills introduced in response to the financial crisis, having been reported out of the House Committee to which it was assigned. It is currently awaiting further action.

This update examines the implications of the Kanjorski bill for non-U.S. domiciled investment advisers.