IAA Applauds Passage of Small Entity Bill
April 28, 2023
IAA VP of Communications & Marketing Janay Rickwalder.
On Wednesday, the House Financial Services Committee unanimously approved H.R. 2792, the Small Entity Update Act introduced by Representative Ann Wagner (R-Mo.).
IAA strongly supported this bill, which would require the SEC to report to Congress and conduct a rulemaking updating its definition of small entity under the Regulatory Flexibility Act. The SEC has been able to avoid application of the Act to smaller advisory firms because its definition of small entity includes only advisory firms with less than $25 million AUM. The threshold since 2011 for advisers to register with the SEC (with limited exceptions) is $100 million AUM.
The IAA believes it is critically important that the SEC meaningfully consider the unique challenges of smaller advisory firms and the cumulative impact of policy decisions on their businesses and their ability to serve the investing public. We have been working with members of Congress over the past several years to introduce and support similar bipartisan bills to achieve this result. The IAA applauds the Committee’s approval of H.R. 2792.