The SEC has announced that it is proposing amendments to the rules pursuant both to the Investment Company Act of 1940 and the Investment Advisers Act of 1940 that define the terms “small business” and “small organization” for purposes of the Regulatory Flexibility Act to increase the asset-based thresholds used in those definitions.
Should the proposed rules be approved, the SEC would do the following:
- establish a mechanism for periodic future inflation adjustments of the asset-based thresholds used in these definitions
- amend Form ADV and the rule providing continuing hardship exemptions from filing electronically for investment advisers in connection with the proposed amendments
Interested parties may submit comments related to the amendments on or before 60 days following its publication in the Federal Register.
For further details, please see the proposed rule on the SEC’s website.
Sources:
Amendments to the “Small Business” and “Small Organization” Definitions for Investment Companies and Investment Advisers for Purposes of the Regulatory Flexibility Act (sec.gov)
Propose Rule (sec.gov)
