House Financial Services Subcommittee Considers Amendment to Investment Advisers Act

The House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises debated the "Investment Advisers Modernization Act" (the "Act") on May 17, 2016. The Act, which was introduced by Representative Robert Hurt (R-VA), would amend the Investment Advisers Act of 1940 by requiring the SEC to reduce certain recordkeeping and reporting obligations imposed on investment advisers. Specifically, the Act would ease recordkeeping requirements for certain funds, permit advisers to use testimonials and advertise previous recommendations to certain clients, and modify rules concerning the assignment of advisory contracts, as well other revisions to the custody rule, the advertising rule and the books and records rule. Additionally, the Act would reduce Form PF reporting obligations for certain advisers.