Small Business Investor Capital Access Act
Summary
The Small Business Investor Capital Access Act amends the Investment Advisers Act of 1940. It increases the exemption threshold for certain investment advisers of private funds from $150,000,000 to $175,000,000 to account for inflation.
Additionally, it mandates the Commission to adjust this dollar amount every 5 years based on changes in the Consumer Price Index for All Urban Consumers, rounding to the nearest million. This adjustment aims to provide ongoing relief to smaller investment advisors.
The bill intends to ease regulatory burdens on smaller investment advisors, potentially freeing up capital for small business investment.
Expected Effects
This act will likely reduce the number of investment advisors required to register with the SEC. This could lead to lower compliance costs for these advisors.
It may also increase the flow of capital to small businesses by making it easier for smaller investment funds to operate. The periodic inflation adjustments will help maintain the real value of the exemption threshold over time.
Potential Benefits
- Reduced regulatory burden for smaller investment advisors.
- Potential increase in capital available for small business investment.
- Maintained real value of the exemption threshold through inflation adjustments.
- Simplifies compliance for investment advisors managing private funds.
- May encourage the formation of new, smaller investment funds.
Most Benefited Areas:
Potential Disadvantages
- Reduced oversight of investment advisors, potentially increasing risk for investors.
- May lead to less transparency in the private fund market.
- The benefits may disproportionately favor investment advisors over small businesses or investors.
- The specific impact on capital flow to small businesses is uncertain.
- Potential for increased risk-taking by investment advisors due to reduced regulatory scrutiny.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) by regulating investment activities that affect interstate commerce. Congress has the power to regulate commerce among the several states, and this bill modifies regulations related to investment advisors who manage funds that may operate across state lines.
There are no apparent violations of individual rights or freedoms protected by the Bill of Rights. The bill does not infringe upon freedom of speech, religion, or any other constitutionally protected right.
Overall, the bill seems to operate within the enumerated powers of Congress and does not conflict with any specific constitutional provisions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).