,,ib  ,union ,cal5d> ,no4 #edj  #aad?   
,,congress  #b;d ,session  ,h4 ,r4 #edbd
  ,report ,no4 #aad-fih  ,,9 ,,! ,,h\se 
,,( ,,repres5tatives  ,june #i1 #bjaf   
,mr4 ,hurt ( ,virg9ia 7= himself1 ,mr4  
,v>gas1 ,mr4 ,fo/]1 & ,mr4 ,/iv]s7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,f9ancial ,s]vices     
,july #ba1 #bjaf;,additional sponsors3  
,ms4 ,s9ema & ,mr4 ,hultgr5  ,july #ba1 
#bjaf ,report$ ) an am5dm5t1 committ$ to
 ! ,committee ( ! ,:ole ,h\se on ! ,/ate
 ( ! ,union1 & ord]$ to be pr9t$ ,/rike 
out all aft] ! enact+ clause & ins]t !  
"p pr9t$ 9 italic ,= text ( introduc$   
bill1 see copy ( bill z introduc$ on    
,june #i1 #bjaf  ,a ,,bill  ,to am5d !  
,inve/m5t ,advis]s ,act ( #aidj & to    
direct ! ,securities & ,ex*ange         
,commission to am5d its rules to        
mod]nize c]ta9 requirem5ts relat+ to    
inve/m5t advis]s1 & = o!r purposes4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,inve/m5t ,advis]s ,mod]nization ,act ( 
#bjaf4  #b4 ,mod]niz+ c]ta9 requirem5ts 

relat+ to inve/m5t advis]s  7a7         
,inve/m5t advisory contracts  7#a7      
,assignm5t  7,a7 ,assignm5t def9$       
,section #bjb7;a77#a7 ( ! ,inve/m5t     
,advis]s ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;b-#b7;a77#a77 is am5d$ by /rik+ 2 b 
& all t foll[s & ins]t+ 2 b no assignm5t
 ( an inve/m5t advisory contract %all be
 deem$ to result f ! dea? or )drawal1 or
 ! sale or transf] ( ! int]e/s1 ( a     
m9ority ( ! memb]s1 p>tn]s1 %>ehold]s1  
or o!r equity own]s ( ! inve/m5t advis] 
hav+ only a m9ority int]e/ 9 ! bus9ess (
 ! inve/m5t advis]1 or f ! admission to 
! inve/m5t advis] ( "o or m memb]s1     
p>tn]s1 %>ehold]s1 or o!r equity own]s  
:o1 aft] su* admission1 %all be only a  
m9ority ( ! memb]s1 p>tn]s1 %>ehold]s1  
or o!r equity own]s & %all h only a     
m9ority int]e/ 9 ! bus9ess44  7,b7      
,cons5t to assignm5t by qualifi$ cli5ts 
,section #bje7;a77#b7 ( ! ,inve/m5t     
,advis]s ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;b-#e7;a77#b77 is am5d$ by ins]t+    
be=e ! semicolon ! foll[+3 1 except t if

 su* o!r p>ty is a qualifi$ cli5t 7z    
def9$ 9 section #bge4bje-c ( title #ag1 
,code ( ,f$]al ,regulations1 or any     
successor !reto71 su* o!r p>ty may      
provide su* cons5t at ! "t ! p>ties ent]
 into1 ext5d1 or r5ew su* contract4     
7#b7 ,n requir$ to provide =            
notification ( *ange 9 memb]%ip (       
p>tn]%ip ,section #bje ( ! ,inve/m5t    
,advis]s ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;b-#e7 is am5d$-- 7,a7 9 subsection  
7a7--  7i7 9 p>agraph 7#a71 by /rik+ !  
semicolon & ins]t+ 2 or2  7ii7 9        
p>agraph 7#b71 by /rik+ 2 or & ins]t+ a 
p]iod2 &  7iii7 by /rik+ p>agraph 7#c72 
&  7,b7 9 subsection 7d71 by /rik+      
p>agraphs 7#b7 & 7#c7 ( subsection 7a7 &
 ins]t+ subsection 7a77#b74  7b7        
,adv]tis+ rule  7#a7 ,9 g5]al ,n lat]   
?an #ij days aft] ! date ( ! enactm5t ( 
?is ,act1 ! ,commission %all am5d       
section #bge4bjf7d7-a ( title #ag1 ,code
 ( ,f$]al ,regulations1 to provide t    
p>agraphs 7a77#a7 & 7a77#b7 ( su*       
section d n apply to an adv]tisem5t t an

 inve/m5t advis] publi%es1 circulates1  
or di/ributes solely to p]sons describ$ 
9 p>agraph 7#b7 ( ?is subsection4  7#b7 
,p]sons describ$ ,a p]son is describ$ 9 
?is p>agraph if su* p]son is1 or !      
inve/m5t advis] reasonably believes su* 
p]son is--  7,a7 a qualifi$ cli5t 7z    
def9$ 9 section #bge4bje-c ( title #ag1 
,code ( ,f$]al ,regulations71 det]m9$ z 
( ! "t ( ! publication1 circulation1 or 
di/ribution ( ! adv]tisem5t r ?an       
imm$iately prior to or aft] ent]+ into !
 inve/m5t advisory contract ref]r$ to 9 
su* section2  7,b7 a kn[l$geable        
employee 7z def9$ 9 section #bgj4c;c-#e 
( title #ag1 ,code ( ,f$]al             
,regulations7 ( any private fund to :i* 
! inve/m5t advis] acts z an inve/m5t    
advis]2  7,c7 a qualifi$ pur*as] 7z     
def9$ 9 section #b7;a7 ( ! ,inve/m5t    
,company ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;a-#b7;a7772 or  7,d7 an accr$it$    
inve/or 7z def9$ 9 section #bcj4eja (   
title #ag1 ,code ( ,f$]al ,regulations71
 det]m9$ z if ! inve/m5t advis] 7 !     

issu] ( securities ref]r$ to 9 su*      
section & ! "t ( ! publication1         
circulation1 or di/ribution ( !         
adv]tisem5t 7 ! sale ( su* securities4  
#c4 ,remov+ duplicative burd5s &        
appropriately tailor+ c]ta9 requirem5ts 
7a7 ,bro*ure deliv]y ,n lat] ?an #ij    
days aft] ! date ( ! enactm5t ( ?is     
,act1 ! ,commission %all am5d section   
#bge4bjd-c7;c7 ( title #ag1 ,code (     
,f$]al ,regulations1 to provide t an    
inve/m5t advis] is n requir$ to deliv] a
 bro*ure or bro*ure supplem5t to a cli5t
 t is a limit$ p>tn]%ip1 limit$         
liability company1 or o!r pool$ inve/m5t
 vehicle = :i* ea* limit$ p>tn]1 memb]1 
or o!r equity own] has receiv$1 be=e    
pur*as+ a security issu$ by ! pool$     
inve/m5t vehicle1 a prospectus1 private 
placem5t memor&um1 or o!r (f]+ docum5t  
conta9+ 7to ! ext5t mat]ial to an       
und]/&+ ( ! pool$ inve/m5t vehicle1 !   
bus9ess ( ! pool$ inve/m5t vehicle1 & ! 
securities be+ (f]$ by ! pool$ inve/m5t 
vehicle7 sub/antially ! same in=mation z

 w\ld be requir$ by ,"p #b;,a or #b;,b (
 ,=m ,,adv at ! "t ( deliv]y ( ! bro*ure
 or bro*ure supplem5t1 z ! case may be4 
7b7 ,=m ,,pf ,n lat] ?an #ij days aft] !
 date ( ! enactm5t ( ?is ,act1 !        
,commission %all am5d section           
#bge4bjd7;b7-#a ( title #ag1 ,code (    
,f$]al ,regulations1 to provide t an    
inve/m5t advis] to a private fund is n  
requir$ to report any in=mation beyond t
 :i* is requir$ by sections #a;a & #a;b 
( ,=m ,,pf1 unless su* inve/m5t advis]  
is a l>ge h$ge fund advis] or a l>ge    
liquidity fund advis] 7z su* t]ms are   
def9$ 9 su* ,=m74  7c7 ,cu/ody rule ,n  
lat] ?an #ij days aft] ! date ( !       
enactm5t ( ?is ,act1 ! ,commission %all 
am5d section #bge4bjf7d7-b ( title #ag1 
,code ( ,f$]al ,regulations1 z foll[s3  
7#a7 ,! ,commission %all provide        
additional exceptions to ! indep5d5t    
v]ification requirem5t ( p>agraph       
7a77#d7 ( su* section = an inve/m5t     
advis] ) respect to funds & securities (
 a limit$ p>tn]%ip 7or a limit$         

liability company or o!r type ( pool$   
inve/m5t vehicle71 z foll[s3  7,a7 ,an  
exception t applies if ! out/&+         
securities 7o!r ?an %ort-t]m pap]1 z    
def9$ 9 section #b7;a7 ( ! ,inve/m5t    
,company ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;a-#b7;a777 ( ! pool$ inve/m5t       
vehicle are b5eficially own$ exclusively
 by--  7i7 ! inve/m5t advis]2  7ii7     
affiliat$ p]sons ( ! inve/m5t advis]2   
7iii7 sup]vis$ p]sons ( ! inve/m5t      
advis]2  7iv7 (fic]s1 directors1 &      
employees ( ! affiliat$ p]sons ( !      
inve/m5t advis]2  7v7 family memb]s &   
=m] family memb]s 7z su* t]ms are def9$ 
9 section #bge4bjb7;a77#aa77;,g7-#a (   
title #ag1 ,code ( ,f$]al ,regulations7 
( p]sons describ$ 9 clause 7iii7 or     
7iv72 or  7vi7 (fic]s1 directors1       
employees1 or affiliat$ p]sons (1 or    
p]sons :o provide1 h provid$1 or h ent]$
 into a contract to provide s]vices to--
  7,i7 ! inve/m5t advis] ( ! pool$      
inve/m5t vehicle2  7,,ii7 "o or m cli5ts
 ( ! inve/m5t advis] ( ! pool$ inve/m5t 

vehicle2 or  7,,iii7 issu]s f :i* !     
pool$ inve/m5t vehicle or any o!r cli5t 
( ! inve/m5t advis] ( ! pool$ inve/m5t  
vehicle has acquir$ securities1 su* z ! 
portfolio company ( a private fund4     
7,b7 ,an exception t applies if ! pool$ 
inve/m5t vehicle has be5 e/abli%$ to    
hold only ! securities ( a s+le issu] 9 
:i* "o or m pool$ inve/m5t vehicles     
manag$ by ! inve/m5t advis] h acquir$ a 
controll+ int]e/4  7#b7 ,consi/5t )1 &  
exp&+ on1 ,,im ,guidance ,update ,no4   
#bjac-jd1 titl$ ,privately ,(f]$        
,securities "u ! ,inve/m5t ,advis]s ,act
 ,cu/ody ,rule1 publi%$ by ! ,division (
 ,inve/m5t ,managem5t ( ! ,commission1 !
 ,commission %all1 ) respect to !       
exception = c]ta9 privately (f]$        
securities 9 p>agraph 7b77#b7 ( su*     
section--  7,a7 remove ! requirem5t (   
clause 7i77,b7 ( su* p>agraph 7relat+ to
 ! unc]tificat$ nature & recordation (  
own]%ip ( ! securities72 &  7,b7 remove 
! requirem5t ( clause 7ii7 ( su*        
p>agraph 7relat+ to audit & f9ancial    

/atem5t di/ribution requirem5ts )       
respect to securities ( pool$ inve/m5t  
vehicles74  7d7 ,proxy vot+ rule ,n lat]
 ?an #ij days aft] ! date ( ! enactm5t (
 ?is ,act1 ! ,commission %all am5d      
section #bge4bjf7d7-f ( title #ag1 ,code
 ( ,f$]al ,regulations1 to provide t su*
 section does n apply to any vot+       
au?ority ) respect to cli5t securities t
 are n public securities4  #d4          
,facilitat+ robu/ capital =mation by    
prev5t+ regulatory mismat* ,!           
,commission may n-- 7#a7 am5d section   
#bcj4aef ( title #ag1 ,code ( ,f$]al    
,regulations1 to ext5d ! provisions (   
su* section to (f]+s ( securities issu$ 
by private funds2 or  7#b7 adopt rules  
applicable to (f]+s ( securities issu$  
by private funds t are sub/antially !   
same z ! provisions ( su* section4  #e4 
,exclusion ( advisory s]vices to regi/]$
 inve/m5t companies ,?is ,act %all n    
apply ) respect to advisory s]vices     
provid$1 or propos$ to be provid$1 to an
 inve/m5t company regi/]$ "u ! ,inve/m5t

 ,company ,act ( #aidj 7#ae ,u4,s4,c4   
#hj;a-#a et seq474  #f4 ,ref]5ces to    
regulations ,9 ?is ,act1 any ref]5ce to 
a regulation %all be con/ru$ to ref] to 
su* regulation or any successor !reto4  
#g4 ,def9itions ,9 ?is ,act3 7#a7       
,public security ,! t]m public security 
means a security issu$ by an issu] t--  
7,a7 is requir$ to submit reports "u    
section #ac7;a7 or #ae7;d7 ( !          
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #ghm7a72 #gho7d772 or  7,b7   
has a security t is li/$ or trad$ on any
 ex*ange or organiz$ m>ket op]at+ 9 a   
=eign jurisdiction4  7#b7 ,t]ms def9$ 9 
,inve/m5t ,advis]s ,act ( #aidj ,! t]ms 
def9$ 9 section #bjb7;a7 ( ! ,inve/m5t  
,advis]s ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;b-#b7;a77 h ! mean+s giv5 su* t]ms 9
 su* section4  ,july #ba1 #bjaf ,report$
 ) an am5dm5t1 committ$ to ! ,committee 
( ! ,:ole ,h\se on ! ,/ate ( ! ,union1 &
 ord]$ to be pr9t$