The SEC’s amendments to the definitions of “small business” and “small organization” for investment companies and advisers recalibrate regulatory thresholds under the Investment Company Act and Advisers Act. This recalibration directly affects compliance obligations for registered funds, business development companies, and advisers by potentially altering which entities qualify for streamlined regulatory treatment under the Regulatory Flexibility Act. Middle-market credit professionals should monitor these changes closely, as they may influence fund structuring, regulatory costs, and the competitive landscape for smaller investment vehicles.
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…
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…
Source: Federal Register