[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1402 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1402

   To amend the Investment Advisers Act of 1940, with respect to the 
                exemption to registration requirements.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 15, 2007

 Mr. Grassley introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend the Investment Advisers Act of 1940, with respect to the 
                exemption to registration requirements.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hedge Fund Registration Act of 
2007''.

SEC. 2. LIMITATION ON EXEMPTION FROM INVESTMENT ADVISER REGISTRATION 
              REQUIREMENTS.

    Section 203(b)(3) of the Investment Advisers Act of 1940 (15 U.S.C. 
80b-3(b)(3)) is amended to read as follows:
            ``(3) any investment adviser who, during the course of the 
        preceding 12-month period--
                    ``(A) had assets under management of not more than 
                $50,000,000;
                    ``(B) had fewer than 15 clients, except that for 
                purposes of determining such number, no shareholder, 
                partner, or beneficial owner of a business development 
                company, shall be deemed to be a client of the 
                investment adviser, unless such person is a client of 
                the investment adviser separate and apart from their 
                status as a shareholder, partner, or beneficial owner;
                    ``(C) did not manage the assets of more than 15 
                investors, whether individually, in a pooled investment 
                vehicle described in paragraph (1) or (7) of section 
                3(c) of the Investment Company Act of 1940 (15 U.S.C. 
                80a-3(c)), or otherwise; and
                    ``(D) was neither held out generally to the public 
                as an investment adviser nor acted as an investment 
                adviser to any investment company registered under 
                title I, or a company which has elected to be a 
                business development company pursuant to section 54 of 
                title I, and has not withdrawn its election;''.
                                 <all>