House Passes Small Entity Update Act To Evaluate Size Cutoff for Advisors
The U.S. House of Representatives approved the Small Entity Update Act, moving the proposal to the Senate. The measure could reduce regulatory burdens on some independent financial advisors by requiring the U.S. Securities and Exchange Commission (SEC) to study and update its definition of “small entity” within one year of the bill’s passage and every five years thereafter. In its study, the SEC would have to account for the growth of the financial services industry and ensure that any definition captures “a meaningful number of entities.” Currently, advisors with less than $25 million in assets under management are prohibited from registering with the SEC, and those with $110 million or more are required to do so.
Read the full article on PLANADVISER