SEC Proposes Amendments to the Small Entity Definitions for Investment Companies and Investment Advisers for Purposes of the Regulatory Flexibility Act
summary
The SEC proposed amending Regulatory Flexibility Act thresholds to better define small investment entities and minimize their economic regulatory impact.
paragraph
The SEC proposed raising asset-based thresholds for investment companies, advisers, and business development companies to more accurately define 'small entities.' The amendment includes updating asset aggregation methods and implementing decennial inflation adjustments. This regulatory shift aims to modernize requirements and minimize the economic impact of rulemaking on smaller firms.
narrative
The Securities and Exchange Commission (SEC) has proposed amendments to the rules defining small entities under the Regulatory Flexibility Act. The proposal seeks to increase asset-based thresholds for registered investment companies, investment advisers, and business development companies. Additionally, the SEC plans to update how related funds' assets are aggregated and introduce inflation adjustments every ten years. These changes are designed to help the Commission better tailor its regulatory analyses to the specific challenges faced by small entities. By modernizing these definitions, the SEC aims to improve regulatory effectiveness while minimizing significant economic impacts. The proposal will be published in the Federal Register, initiating a 60-day public comment period.
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Parties
proposing releasesec chairman paul s. atkinsSecurities and Exchange Commission
Keywords
small entitiessmallinvestmentinvestment companiesinvestment adviserscompaniescompanies investmententitiesadviserssmall entitypurposes regulatoryregulatory flexibilityregulatorysecpurposes
Exhibits & Attached Documents (2)
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Entities 3
- person proposing release
- agency sec chairman paul s. atkins
- agency Securities and Exchange Commission
Triples 8
- Securities And Exchange Commission proposed amendments rules that define which registered investment companies, investment advisers, and business development companies qualify as small entities for purposes of the Regulatory Flexibility Act
- Proposal would raise the small entity thresholds for investment companies and advisers
- SEC Chairman Paul S. Atkins said the proposal would further the Commission's commitment by more accurately capturing the types and numbers of investment advisers and investment companies that are ‘small’
- Proposal would increase the asset-based thresholds under which investment companies and investment advisers are deemed small entities
- Proposal would update the way that related funds’ assets are aggregated for purposes of defining small entities
- Proposal would provide inflation adjustments to the asset-based thresholds by order every 10 years
- Proposing release will be published in the Federal Register
- Public comment period will remain open until 60 days after the date of publication of the proposing release in the Federal Register
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The Securities and Exchange Commission today proposed amendments to the rules that define which registered investment companies, investment advisers, and business development companies qualify as small entities for purposes of the Regulatory Flexibility Act (RFA).The RFA requires federal agencies to conduct certain analyses, with the goal of minimizing the significant economic impact of federal rulemaking on small entities. This proposal would raise the small entity thresholds for investment companies and advisers. It is designed to help the Commission better tailor its analyses to address the specific regulatory challenges that these small entities face and consider adapting its rulemaking accordingly.“The Commission has a longstanding commitment to understanding and addressing the concerns of small entities,” said SEC Chairman Paul S. Atkins. “Today’s proposal – consistent with the SEC’s intent to modernize regulatory requirements – would further this commitment by more accurately capturing the types and numbers of investment advisers and investment companies that are ‘small.’ This, in turn, would help the Commission more appropriately promote the effectiveness and efficiency of its regulations, with the goal of minimizing the significant economic impact on small entities.”Specifically, this proposal would:Increase the asset-based thresholds under which investment companies and investment advisers are deemed small entities;Update the way that related funds’ assets are aggregated for purposes of defining small entities; andProvide for inflation adjustments to the asset-based thresholds by order every 10 years.The proposing release will be published in the Federal Register. The public comment period will remain open until 60 days after the date of publication of the proposing release in the Federal Register.
OCR text (1,839c · html-text · 99% conf)
The Securities and Exchange Commission today proposed amendments to the rules that define which registered investment companies, investment advisers, and business development companies qualify as small entities for purposes of the Regulatory Flexibility Act (RFA).The RFA requires federal agencies to conduct certain analyses, with the goal of minimizing the significant economic impact of federal rulemaking on small entities. This proposal would raise the small entity thresholds for investment companies and advisers. It is designed to help the Commission better tailor its analyses to address the specific regulatory challenges that these small entities face and consider adapting its rulemaking accordingly.“The Commission has a longstanding commitment to understanding and addressing the concerns of small entities,” said SEC Chairman Paul S. Atkins. “Today’s proposal – consistent with the SEC’s intent to modernize regulatory requirements – would further this commitment by more accurately capturing the types and numbers of investment advisers and investment companies that are ‘small.’ This, in turn, would help the Commission more appropriately promote the effectiveness and efficiency of its regulations, with the goal of minimizing the significant economic impact on small entities.”Specifically, this proposal would:Increase the asset-based thresholds under which investment companies and investment advisers are deemed small entities;Update the way that related funds’ assets are aggregated for purposes of defining small entities; andProvide for inflation adjustments to the asset-based thresholds by order every 10 years.The proposing release will be published in the Federal Register. The public comment period will remain open until 60 days after the date of publication of the proposing release in the Federal Register.