H.R. 4200, SBIC Advisers Relief Act of 2014

H.R. 4200

SBIC Advisers Relief Act of 2014

December 2, 2014 (113th Congress, 2nd Session)

Staff Contact

Floor Situation

On Tuesday, December 2, 2014, the House will consider H.R. 4200, the SBIC Advisers Relief Act of 2014, under a suspension of the rules.  H.R. 4200 was introduced on March 11, 2014 by Rep. Blaine Luetkemeyer (R-MO) and referred to the Committee on Financial Services, which ordered the bill reported by a vote of 56-0.

Bill Summary

H.R. 4200 amends the Investment Advisers Act of 1940 to exempt certain advisers of small business investment companies (SBICs) from Securities and Exchange Commission (SEC) registration requirements relating to investment advice relating to venture capital funds.  Moreover, this legislation excludes SBICs from the threshold calculation for assets under management of private funds.  The bill provides the same exemption with respect to any state and local law requiring the registration, licensing, or qualifications of investment advisers.


The Dodd-Frank Act requires advisers of private equity funds to register as investment advisers with the SEC.[1]  However, the Act provided an exemption for advisers of solely SBIC funds or solely venture capital funds.  Advisers that handle both SBIC funds and venture capital funds are not exempt.  Furthermore, an oversight in the Dodd-Frank Act left advisers of SBICs and venture capital funds open to regulation from entities at the state level, many of which were unclear of the regulatory role they would be required to take with respect to SBIC and venture capital advisers.[2]  Furthermore, Dodd-Frank allows investment advisers who have less than $150 million in assets under management to claim an exemption from SEC registration.  However, SBICs are included in this calculation.[3]  This legislation seeks to eliminate these duplicative, unnecessary, and burdensome regulations put upon SBIC and venture capital fund advisers.

[1] www.sbia.org/resource/resmgr/Legislation/HR_4200_Background_and_Summa.pdf
[2] http://www.law360.com/articles/525896/sbic-relief-act-will-be-good-for-advisers-and-business
[3] www.sbia.org/resource/resmgr/Legislation/HR_4200_Background_and_Summa.pdf


CBO estimates that implementing this legislation would not significantly affect discretionary spending.[4]  Enacting H.R. 4200 would not affect direct spending or revenues.

[4] http://www.cbo.gov/sites/default/files/hr4200.pdf

Additional Information

For questions or further information contact the GOP Conference at 5-5107.