Sen. Jack Reed (D-R.I.) announced Monday his plans to introduce an amendment to close a “loophole” in Wall Street reform legislation drafted by Sen. Chris Dodd (D-Conn.) that would allow private equity and hedge funds to avoid registering with the Securities and Exchange Commission –HuffPost
Specifically, the Reed amendment would:
• Close the loophole on private equity and venture capital exemptions. Right now, only hedge fund advisers would be required to register under the bill, and there are exemptions for other private pool advisers, including private equity and venture capital advisers. Reed’s amendment would require all of these advisers to private pools to register with the SEC.
• Ensure that the new adviser registration threshold does not weaken existing oversight. Reed’s amendment requires advisers that fall below the new $100 million adviser registration threshold to either be registered and examined by a state regulator, or registered with the SEC.