The Obama administration told members of Congress Tuesday that it would veto H.R. 1105, the Small Business Capital Access and Job Preservation Act, which would amend the Investment Advisers Act of 1940 to exempt nearly all private equity fund advisors from registration.
The bill is up for a vote Wednesday afternoon on the House floor.
“The legislation effectively provides a blanket registration and reporting exemption for private equity funds, undermining advances in investor protection and regulatory oversight implemented by the Securities and Exchange Commission under Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act,” the administration told Rep. Robert Hurt, R-Va., the bill’s sponsor, and its 12 co-sponsors.
The administration said that it was “committed to building a safer, more stable financial system,” and that H.R. 1105 represented “a step backwards from the progress made to date, given that private equity fund advisors have been filing reports with the SEC for over a year.”