IAA Applauds Introduction of the Small Entity Update Act
May 15, 2025
Contact: IAA VP of Communications & Marketing Janay Rickwalder
The Investment Adviser Association (IAA) strongly supports the Small Entity Update Act, introduced by a bipartisan group of Congress Members led by Rep. Ann Wagner which would require the Securities and Exchange Commission (SEC) to report to Congress and initiate a rulemaking to update its outdated definition of a “small entity” under the Regulatory Flexibility Act.
Currently, the SEC’s definition of a small adviser includes only those with less than $25 million in assets under management (AUM). However, the threshold for SEC registration is $100 million AUM—with limited exceptions—effectively excluding small advisers from the protections and considerations intended by the Regulatory Flexibility Act.
The IAA believes it is critically important that the SEC consider the unique challenges facing small advisers, as well as the cumulative impact of regulatory decisions on their operations and their ability to serve the investing public.
We have worked closely with members of Congress for several years to support bipartisan efforts aimed at achieving this much-needed update. The introduction of the Small Entity Update Act is a welcome and meaningful step forward.
We applaud the bill’s sponsors for their leadership and urge Congress to move swiftly to pass this important measure.
