The House Financial Services Committee on Wednesday approved amended versions of both H.R. 1082, the Small Business Capital Access and Job Preservation Act, and H.R. 1070, the Small Company Capital Formation Act, on voice votes.
The former provides an exemption for private equity fund advisors from SEC registration requirements, and the latter raises the dollar limit on Regulation A exemptions, as well as precluding state authority to review Regulation A offerings.
Expressing concern over measures in both bills, David Massey (left), the North Carolina deputy securities administrator and president of the North American Securities Administration Association (NASAA), wrote to the Committee on June 15. On Tuesday, in his regular AdvisorOne blog post, he explained those concerns and pointed out that investors could be at risk from some of the language in the bills.
In his blog, Massey said that the lack of a definition in H.R. 1082 of “private equity fund” and obliging the SEC to define the term puts the cart before the horse in specifying exemptions for a term that has not yet been defined. He also expressed concern over the lack of clarity regarding reporting requirements for private equity fund advisors.