SEC Proposes Amendments to Asset-Based Thresholds for Small Entities

The SEC has released a proposed rule that would amend the definitions of “small business” and “small organization” under the Investment Company Act of 1940 and Investment Advisers Act of 1940 “to increase the asset-based thresholds used in those definitions.” The proposal is being released in response to an ongoing directive under the Regulatory Flexibility Act (RFA) of 1980, which requires the Commission to perform analyses of whether federal rulemaking would significantly affect a large proportion of small entities.

In a related development, the SEC has also published a list of rules that it intends to review under the RFA. Specifically, the Commission is requesting public feedback on “whether the rules should be continued without change, or should be amended or rescinded to minimize any significant economic impact of the rules upon a substantial number of small entities.”

For more information, see the press release and fact sheet on the SEC’s Web site.