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Cmte Financial Services (R)
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Bachus Amendment To The Private Fund Investment Advisers Registration Act Is Accepted By Committee

WASHINGTON, Oct 27 -

- During consideration of H.R. 3818, the Private Fund Investment Advisers Registration Act, Financial Services Committee Ranking Member Spencer Bachus offered an amendment that protects the fiduciary obligations that investment advisers owe their clients. 

The Democrats' legislation gives the Securities and Exchange Commission (SEC) the ability to define the term "client" in a broad manner.  Clarifying this language is necessary to avoid unintended consequences.  The Bachus amendment clarifies that the SEC not define the term "client" to include investors in a private fund managed by an investment adviser because advisers could be subjected to an irresolvable conflict when they manage a pooled investment with the interest of each individual investor in mind.  

Click here to view Ranking Member Bachus' remarks on his amendment and here to view a copy of the amendment.

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