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Titles Actions Overview All Actions Cosponsors Committees Related Bills Subjects Latest Summary All Summaries

Titles (4)

Short Titles

Short Titles - House of Representatives

Short Titles as Passed House

Investment Advisers Modernization Act of 2016

Short Titles as Reported to House

Investment Advisers Modernization Act of 2016

Short Titles as Introduced

Investment Advisers Modernization Act of 2016

Official Titles

Official Titles - House of Representatives

Official Title as Introduced

To amend the Investment Advisers Act of 1940 and to direct the Securities and Exchange Commission to amend its rules to modernize certain requirements relating to investment advisers, and for other purposes.


Actions Overview (3)

Date Actions Overview
09/09/2016Passed/agreed to in House: On passage Passed by the Yeas and Nays: 261 - 145 (Roll no. 495).
07/21/2016Reported (Amended) by the Committee on Financial Services. H. Rept. 114-698.
06/09/2016Introduced in House

All Actions (27)

Date Chamber All Actions
09/12/2016SenateReceived in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
09/09/2016-12:10pmHouseMotion to reconsider laid on the table Agreed to without objection.
09/09/2016-12:10pmHouseOn passage Passed by the Yeas and Nays: 261 - 145 (Roll no. 495).
09/09/2016-12:04pmHouseOn motion to recommit with instructions Failed by the Yeas and Nays: 176 - 232 (Roll no. 494).
09/09/2016-11:41amHouseConsidered as unfinished business. (consideration: CR H5244-5246)
09/09/2016-10:36amHousePOSTPONED PROCEEDINGS - At the conclusion of debate on the Torres motion to recommit, the Chair put the question on adoption of the motion and by voice vote, announced the noes had prevailed. Mrs. Torres demanded the yeas and nays and the Chair postponed further proceedings on the motion to recommit until later in the legislative day.
09/09/2016-10:36amHouseThe previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H5244)
09/09/2016-10:30amHouseDEBATE - The House proceeded with 10 minutes of debate on the Torres motion to recommit with instructions pending a reservation of a point of order. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to add at the end of the bill a section pertaining to Report on Emergency Vehicle Response Times of Companies Owned by Private Funds. Subsequently, the reservation was removed.
09/09/2016-10:29amHouseMrs. Torres moved to recommit with instructions to the Committee on Financial Services. (consideration: CR H5238-5239, H5244-5245; text: CR H5238-5239)
09/09/2016-10:29amHouseH.Amdt.1391 On agreeing to the Foster amendment (A002) Agreed to by voice vote.
09/09/2016-10:29amHouseH.Amdt.1391 The previous question was ordered on the amendment (A002) without objection. (consideration: CR H5238)
09/09/2016-10:19amHouseDEBATE - Pursuant to the provisions of H.Res. 844, the House proceeded with 10 minutes of debate on the Foster amendment.
09/09/2016-10:19amHouseH.Amdt.1391 Amendment (A002) offered by Mr. Foster. (consideration: CR H5237-5238; text: CR H5237)
09/09/2016-9:20amHouseDEBATE - The House proceeded with one hour of debate on H.R. 5424.
09/09/2016-9:17amHouseRule provides for consideration of H.R. 2357 and H.R. 5424.
09/09/2016-9:17amHouseConsidered under the provisions of rule H. Res. 844. (consideration: CR H5230-5239; text of measure as reported in House: CR H5230-5231)
09/09/2016-9:17amHouseORDER OF PROCEDURE - Mr. Hurt asked unanimous consent that the question of adopting a motion to recommit on H.R. 5424 may be subject to postponement as though under clause 8 of rule 20.
09/08/2016-2:13pmHouseRule H. Res. 844 passed House.
09/06/2016-7:21pmHouseRules Committee Resolution H. Res. 844 Reported to House. Rule provides for consideration of H.R. 2357 and H.R. 5424.
07/21/2016HousePlaced on the Union Calendar, Calendar No. 540.
07/21/2016HouseReported (Amended) by the Committee on Financial Services. H. Rept. 114-698.
06/16/2016HouseOrdered to be Reported (Amended) by the Yeas and Nays: 47 - 12.
Action By: Committee on Financial Services
06/16/2016HouseCommittee Consideration and Mark-up Session Held.
Action By: Committee on Financial Services
06/15/2016HouseCommittee Consideration and Mark-up Session Held.
Action By: Committee on Financial Services
06/09/2016HouseReferred to the House Committee on Financial Services.
06/09/2016HouseIntroduced in House
05/17/2016HouseHearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Introduction and Referral.
Action By: House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises

Cosponsors (5)

* = Original cosponsor
CosponsorDate Cosponsored
Rep. Vargas, Juan [D-CA-51]* 06/09/2016
Rep. Foster, Bill [D-IL-11]* 06/09/2016
Rep. Stivers, Steve [R-OH-15]* 06/09/2016
Rep. Sinema, Kyrsten [D-AZ-9] 06/16/2016
Rep. Hultgren, Randy [R-IL-14] 06/16/2016

Committees (2)

Committees, subcommittees and links to reports associated with this bill are listed here, as well as the nature and date of committee activity and Congressional report number.

Committee / Subcommittee Date Activity Related Documents
House Financial Services06/09/2016 Referred to
06/16/2016 Markup by
07/21/2016 Reported by H. Rept. 114-698
House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises05/17/2016 Hearings by
Senate Banking, Housing, and Urban Affairs09/12/2016 Referred to

A related bill may be a companion measure, an identical bill, a procedurally-related measure, or one with text similarities. Bill relationships are identified by the House, the Senate, or CRS, and refer only to same-congress measures.


Latest Summary (3)

There are 3 summaries for H.R.5424. View summaries

Shown Here:
Passed House amended (09/09/2016)

Investment Advisers Modernization Act of 2016

This bill directs the Securities and Exchange Commission (SEC) to amend specified regulations for investment advisers as they apply to private equity firms and private investment funds.

(Sec. 2) The bill revises the disclaimer that, in the case of an investment adviser that is a partnership, an assignment shall not be deemed to result from the death, withdrawal, sale or transfer of minority interests to apply the disclaimer also to minority members, shareholders, for other equity owners of the investment adviser. Qualified clients of an investment adviser may consent to an assignment of the investment adviser contract at the time they enter into an advisory contract.

The Investment Advisers Act of 1940 is amended to repeal the requirement that advisers organized as partnerships notify the other party to an investment adviser contract every time there is a change in the composition of the partnership.

The SEC shall waive the application of specified antifraud prohibitions to advisers who advertise exclusively to:

  • qualified clients, determined as of the time of the publication, circulation, or distribution of the advertisement rather than immediately before or after entering into the investment advisory contract;
  • knowledgeable employees of any private fund to which the investment adviser acts as an investment adviser;
  • qualified purchasers; or
  • accredited investors (determined as if the investment adviser were the securities issuer and the time of the publication, circulation, or distribution of the advertisement were the sale of such securities).

(Sec. 3) The SEC must amend a certain regulation regarding Form PF which registered investment advisers with at least $150 million in private funds assets under management must file with the SEC to report information about the private funds that they manage. This amendment shall state that an investment adviser to a private fund is not required to report any information beyond that which is required by sections 1a and 1b of Form PF unless it is a large hedge fund adviser or a large liquidity fund adviser.

The SEC shall also amend the regulation requiring that client funds and securities of which an investment adviser has custody are verified by actual examination periodically by an independent public accountant.

The SEC shall amend the proxy voting regulation to waive its application to any voting authority exercised by an investment adviser regarding client securities that are not public securities.

(Sec. 4) On the other hand, the SEC may not:

  • amend a specified regulation to extend its requirements and prohibitions concerning investment company sales literature to offerings of securities issued by private funds, or
  • adopt substantially similar rules applicable to such offerings.

(Sec. 5) This bill shall not apply to advisory services supplied to an investment company registered under the Investment Company Act of 1940.

(Sec. 6) Any regulation referred to in this bill includes any successor regulation.