,,ii  #aai? ,,congress  #a/ ,session    
,s4 #cefb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #ah1 #bjbe,mr4
 ,scott ( ,florida 7= himself & ,mr4    
,fett]man7 introduc$ ! foll[+ bill2 :i* 
0 read twice & ref]r$ to ! ,committee on
 ,bank+1 ,h\s+1 & ,urban ,affairs  ,a   
,,bill  ,to require ! ,securities &     
,ex*ange ,commission to am5d ! rules ( !
 ,commission relat+ to disclosures by   
advis]s ( private funds1 & = o!r        
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,disclos+ ,inve/m5ts 9     
,=eign ,adv]s>ies ,act ( #bjbe4  #b4    
,enhanc$ disclosure requirem5ts =       
advis]s ( private funds ,section #bjd ( 
! ,inve/m5t ,advis]s ,act ( #aidj 7#ae  
,u4,s4,c4 #hj;b-#d7 is am5d$ by add+ at 
! end ! foll[+3  7g7 ,enhanc$ disclosure
 requirem5ts = advis]s ( private funds  
7#a7 ,def9itions ,9 ?is subsection3 7,a7
 ,c\ntry ( conc]n ,! t]m c\ntry (       
conc]n-- 7i7 has ! mean+ giv5 ! t]m     
cov]$ nation 9 section #dhgb7;f7 ( title
 #aj1 ,unit$ ,/ates ,code2 &  7ii7      

includes a jurisdiction t ! ,commission1
 9 consultation ) ! ,secret>y ( ,/ate & 
! ,secret>y ( ! ,treasury1 det]m9es to  
be subject to ! political & legal       
control ( a cov]$ nation1 z def9$ 9     
section #dhgb7;f7 ( title #aj1 ,unit$   
,/ates ,code4  7,b7 ,cov]$ inve/m5t     
advis] ,! t]m cov]$ inve/m5t advis]     
means-- 7i7 an inve/m5t advis] requir$  
to regi/] ) ! ,commission t1 toge!r )   
all relat$ p]sons1 has at lea/          
#aej1jjj1jjj 9 private fund assets "u   
managem5t2 &  7ii7 an inve/m5t advis]   
rely+ on ! exemption f regi/ration      
provid$ "u subsection 7l7 or 7m7 (      
section #bjc4  7,c7 ,private fund asset 
,) respect to an inve/m5t advis]1 ! t]m 
private fund asset means an asset "u    
managem5t by ! inve/m5t advis] t is     
attributable to a private fund4  7,d7   
,relat$ p]son ,! t]m relat$ p]son has ! 
mean+ giv5 t t]m 9 ! =m describ$ 9      
section #bgi4a ( title #ag1 ,code (     
,f$]al ,regulations1 z 9 effect on !    
date ( enactm5t ( ?is subsection4  7#b7 

,report+ requirem5ts  7,a7 ,9 g5]al ,ea*
 cov]$ inve/m5t advis] %all file an     
annual report ) ! ,commission /at+ !    
total private fund assets 9 c\ntries (  
conc]n attributable to ! private funds  
advis$ by ! cov]$ inve/m5t advis]1 :i*  
%all be brok5 d[n by ! p]c5tage ( ^?    
assets 9 ea* c\ntry ( conc]n4  7,b7     
,application ,= ! purposes ( subp>agraph
 7,a71 ! ,commission %all det]m9e :e!r a
 private fund asset is 9 a c\ntry (     
conc]n bas$ on-- 7i7 ! am\nt ( capital t
 is inve/$ 9 an entity 7includ+ a       
subsidi>y ( an entity7-- 7,i7 t has a   
physical pres5ce or employees 9 t c\ntry
 ( conc]n2 or  7,,ii7 ! plurality ( !   
sales ( :i* are f t c\ntry ( conc]n2 &  
7ii7 ! proportion ( ! total assets &    
liabilities ( an entity describ$ 9      
clause 7i7 t are locat$ 9 t c\ntry (    
conc]n4  7#c7 ,report+ by ,commission   
7,a7 ,publicly available reports ,n lat]
 ?an #a ye> aft] ! date ( enactm5t ( ?is
 subsection1 & n less frequ5tly ?an     
annually !reaft]1 ! ,commission %all    

prep>e & make publicly available a      
report conta9+ a li/ ( cov]$ inve/m5t   
advis]s t1 = ! p]iod cov]$ by ! report1 
h disclos$ to ! ,commission m ?an #j    
private fund assets 9 at lea/ #a c\ntry 
( conc]n4  7,b7 ,additional requirem5ts 
,ea* report prep>$ & made available by !
 ,commission "u subp>agraph 7,a7 %all-- 
7i7 be aggregat$ by a cov]$ inve/m5t    
advis]2 &  7ii7 include ! p]c5tage (    
private fund assets disclos$ by a cov]$ 
inve/m5t advis]1 z applicable4  4  #c4  
,exempt$ transactions ,! ,securities    
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;a et seq47 is am5d$ by ins]t+ aft]  
section #ac;,a 7#ae ,u4,s4,c4 #ghm-#a7 !
 foll[+3  #ac;,b4 ,disclosure           
requirem5ts relat+ to c]ta9 exempt$     
transactions  7a7 ,def9itions ,9 ?is    
section3 7#a7 ,b5eficial own] ,! t]m    
b5eficial own] means a p]son t is       
det]m9$ to be a b5eficial own] "u       
section #bdj4ac;d-#c ( title #ag1 ,code 
( ,f$]al ,regulations1 or any successor 
regulation4  7#b7 ,c\ntry ( conc]n ,!   

t]m c\ntry ( conc]n-- 7,a7 has ! mean+  
giv5 ! t]m cov]$ nation 9 section       
#dhgb7;f7 ( title #aj1 ,unit$ ,/ates    
,code2 &  7,b7 includes a jurisdiction t
 ! ,commission1 9 consultation ) !      
,secret>y ( ,/ate & ! ,secret>y ( !     
,treasury1 det]m9es to be subject to !  
political & legal control ( a cov]$     
nation1 z def9$ 9 section #dhgb7;f7 (   
title #aj1 ,unit$ ,/ates ,code4  7#c7   
,cov]$ exempt$ transaction ,! t]m cov]$ 
exempt$ transaction means an (f] or sale
 ( a security t is-- 7,a7 exempt$ "u    
section #d ( ! ,securities ,act ( #aicc 
7#ae ,u4,s4,c4 #gg;d72 &  7,b7 /ructur$ 
or int5d$ to comply )-- 7i7 section     
#bcj4ejf7;b7 ( title #ag1 ,code ( ,f$]al
 regulations1 or any successor          
regulation2  7ii7 sections #bcj4ija1    
#bcj4ijb1 & #bcj4ijc ( title #ag1 ,code 
( ,f$]al ,regulations1 or any successor 
regulations2 or  7iii7 section          
#bcj4add;,a ( title #ag1 ,code ( ,f$]al 
,regulations1 or any successor          
regulation4  7b7 ,requirem5t  7#a7 ,9   

g5]al ,not)/&+ any o!r provision ( law1 
9 ! case ( an issu] t conducts a cov]$  
exempt$ transaction describ$ 9 p>agraph 
7#b71 t issu] %all provide to !         
,commission1 at su* "t & 9 su* mann] z !
 ,commission may prescribe1 ! foll[+    
in=mation3 7,a7 ,! id5tity ( ! issu]4   
7,b7 ,! place ( incorporation ( ! issu]4
  7,c7 ,:e!r ! issu] is associat$ ) at  
lea/ #a consolidat$ entity1 ! plurality 
( ! assets ( :i* are 9 a c\ntry (       
conc]n4  7,d7 ,:e!r ! issu] is associat$
 ) at lea/ #a consolidat$ entity t is   
incorporat$ 9 a c\ntry ( conc]n4  7,e7  
,! am\nt ( securities sold pursuant to !
 cov]$ exempt$ transaction & ! net      
proce$s to ! issu]4  7,f7 ,! b5eficial  
own]s ( ! issu]4  7,g7 ,! int5d$ use ( !
 proce$s f ! cov]$ exempt$ transaction1 
includ+ ea* c\ntry 9 :i* ! issu] int5ds 
to inve/ ^? proce$s1 :i* %all be brok5  
d[n by ! p]c5tage ( net proce$s by      
indu/ry )9 ea* su* c\ntry4  7,h7 ,!     
exemption ! issu] relies on ) respect to
 ! cov]$ exempt$ transaction4  7#b7     

,p>ticul> cov]$ exempt$ transaction     
describ$ ,a cov]$ exempt$ transaction   
describ$ 9 ?is p>agraph is1 ) respect to
 ! issu] (f]+ or sell+ ! security t is !
 subject ( ! cov]$ exempt$ transaction1 
ei!r ( ! foll[+ in/ances3 7,a7 ,an (f]  
or sale ( securities 9 an am\nt t is n  
less ?an #be1jjj1jjj4  7,b7 ,an (f] or  
sale ( a security su* t ! (f] or sale1  
toge!r ) all cov]$ exempt$ transactions 
by t issu] dur+ ! #a-ye> p]iod prec$+ ! 
date on :i* ! issu] (f]s or sells !     
security1 con/itutes (f]s or sales 9 !  
aggregate ( an am\nt t is n less ?an    
#ej1jjj1jjj4  7c7 ,au?ority ,to revise &
 promulgate rules1 regulations1 & =ms ,!
 ,commission %all1 = ! protection (     
inve/ors & fair & ord]ly m>kets-- 7#a7  
revise & issue su* rules1 regulations1 &
 =ms z may be necess>y to c>ry out ?is  
section2 &  7#b7 issue rules to set     
conditions t limit ! future use ( cov]$ 
exempt$ transactions = issu]s t d n     
comply ) ! disclosure requirem5ts ( ?is 
section4  7d7 ,applicability ,?is       

section %all apply ) respect to any     
cov]$ exempt$ transaction t occurs on or
 aft] ! date t is #a ye> aft] ! date (  
enactm5t ( ?is section4  7e7 ,reports ,!
 ,commission %all1 on a qu>t]ly basis1  
prep>e & make publicly available a      
report t includes all in=mation submitt$
 by an issu] "u ?is section dur+ ! qu>t]
 cov]$ by ! report1 if t issu]-- 7#a7   
is-- 7,a7 incorporat$ 9 a c\ntry (      
conc]n2 or  7,b7 incorporat$ outside ( a
 c\ntry ( conc]n & is associat$ ) at    
lea/ #a consolidat$ entity-- 7i7 !      
plurality ( ! assets ( :i* are 9 a      
c\ntry ( conc]n2 or  7ii7 t is          
incorporat$ 9 a c\ntry ( conc]n2 or     
7#b7 discloses 9 a fil+ made pursuant to
 ?is section t ! issu] int5ds to inve/ !
 proce$s f a cov]$ exempt$ transaction 9
 a c\ntry ( conc]n4  4