Investment Advisers Modernization Act of 2016-What You Need to Know

The House Financial Services Committee approved the Investment Advisers Modernization Act of 2016, requiring the SEC to amend certain sections of the Investment Advisers Act of 1940 (“Advisers Act”) including, but not limited to:

• Advertisements: Rule 206(4)-1 will be amended to not apply to advertisements published solely to qualified clients, knowledgeable employees of private funds, qualified purchasers and accredited investors.

• Proxy Voting: Rule 206 (4)-6 will be amended to not apply to any voting authority with respect to securities that are not public securities

• Form PF: Rule 204(b)-1 will be amended such that a private fund (other than certain large hedge fund and liquidity fund advisers) is not required to report any information beyond that required by sections 1a and 1b of Form PF.