SEC Adopts Amendments to Update Definitions of Small Entity for Investment Companies and Investment Advisers

Why it matters

The SEC's amendments updating definitions of small entities for investment companies and advisers represent a notable regulatory adjustment that could affect compliance and reporting burdens for a segment of the market, but it is a routine regulatory update without broad systemic impact or novel structural change.

Sources

• SEC

  SEC Adopts Amendments to Update Definitions of Small Entity for Investment Companies and Investment Advisers

  The Securities and Exchange Commission today adopted amendments to the rules that define which registered investment companies, investment advisers, and business development companies qualify as small entities for purposes of the Regulatory Flexibility…

• Federal Register

  Amendments to the “Small Business” and “Small Organization” Definitions for Investment Companies and Investment Advisers for Purposes of the Regulatory Flexibility Act

  The Securities and Exchange Commission (the "Commission" or the "SEC") is amending the definitions of "small business" and "small organization" (collectively, "small entities") that are used in connection with Commission rulemaking under the Investment Company Act of 1940 (the "Investment Company Act") and the Investment Advisers Act of 1940 (the "Advisers Act"). These definitions concern regulatory requirements applicable to registered investment companies and business development companies (collectively, "funds") as well as investment advisers. The definitions are used specifically for purposes of the Regulatory Flexibility Act (the…