Asset Management Partners Quoted in Private Funds Managementon House Approval of the Investment Advisers Modernization Act
On June 16, the House Financial Services Committee approved the Investment Advisers Modernization Act of 2016, which passed with a vote of 47-12. The new rules would ease regulatory requirements on private equity funds by updating aspects of the Investment Advisers Act of 1940. Though acclaimed as a “pragmatic” and a “necessary piece of legislation” by American Investment Council president and chief executive Mike Sommers, the likelihood of this bill surmounting the various legislative approvals in the current Congressional term is low, outlined hedge funds partner Joel Wattenbarger (New York) in Private Funds Management. This is “reflective of the political environment,” Mr. Wattenbarger added. “As the current Congress is divided on a number of issues including financial services regulation, the draft legislation has a better chance of getting passed in the next term,” private investment funds partner Jason Brown (Boston) stated. The bill was co-sponsored by congressmen and committee members Robert Hurt (R-VA), Juan Vargas (D-CA), Steve Stivers (R-OH), and Bill Foster (D-IL).