Page:United States Statutes at Large Volume 124.djvu/1601

 124 STAT. 1575 PUBLIC LAW 111–203—JULY 21, 2010 shall issue final rules to define the term ‘venture capital fund’ for purposes of this subsection. The Commission shall require such advisers to maintain such records and provide to the Commission such annual or other reports as the Commission determines nec- essary or appropriate in the public interest or for the protection of investors.’’. SEC. 408. EXEMPTION OF AND REPORTING BY CERTAIN PRIVATE FUND ADVISERS. Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3) is amended by adding at the end the following: ‘‘(m) EXEMPTION OF AND REPORTING BY CERTAIN PRIVATE FUND ADVISERS.— ‘‘(1) IN GENERAL.—The Commission shall provide an exemp- tion from the registration requirements under this section to any investment adviser of private funds, if each of such invest- ment adviser acts solely as an adviser to private funds and has assets under management in the United States of less than $150,000,000. ‘‘(2) REPORTING.—The Commission shall require investment advisers exempted by reason of this subsection to maintain such records and provide to the Commission such annual or other reports as the Commission determines necessary or appro- priate in the public interest or for the protection of investors. ‘‘(n) REGISTRATION AND EXAMINATION OF MID-SIZED PRIVATE FUND ADVISERS.—In prescribing regulations to carry out the requirements of this section with respect to investment advisers acting as investment advisers to mid-sized private funds, the Commission shall take into account the size, governance, and invest- ment strategy of such funds to determine whether they pose sys- temic risk, and shall provide for registration and examination proce- dures with respect to the investment advisers of such funds which reflect the level of systemic risk posed by such funds.’’. SEC. 409. FAMILY OFFICES. (a) IN GENERAL.—Section 202(a)(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(11)) is amended by striking ‘‘or (G)’’ and inserting the following: ‘‘; (G) any family office, as defined by rule, regulation, or order of the Commission, in accordance with the purposes of this title; or (H)’’. (b) RULEMAKING.—The rules, regulations, or orders issued by the Commission pursuant to section 202(a)(11)(G) of the Investment Advisers Act of 1940, as added by this section, regarding the defini- tion of the term ‘‘family office’’ shall provide for an exemption that— (1) is consistent with the previous exemptive policy of the Commission, as reflected in exemptive orders for family offices in effect on the date of enactment of this Act, and the grandfathering provisions in paragraph (3); (2) recognizes the range of organizational, management, and employment structures and arrangements employed by family offices; and (3) does not exclude any person who was not registered or required to be registered under the Investment Advisers Act of 1940 on January 1, 2010 from the definition of the term ‘‘family office’’, solely because such person provides invest- ment advice to, and was engaged before January 1, 2010 in providing investment advice to— 15 USC 80b–2 note. Regulations. Procedures. Records. Records.