The House of Representatives approved 223-202 a financial services reform bill on Dec. 11 that would charge money managers user fees to help cover the costs of their inspections and would require large hedge fund and private equity managers to register with the SEC.
Lawmakers removed a provision that would have subjected about 4,000 money managers associated with broker-dealers to FINRA regulation.
The bill also would shift 4,200 of the about 11,000 SEC-registered money managers — those with less than $100 million under management — to state regulation.
The focus now shifts to the Senate, which is working on its own version of a financial services bill.
Deletion of the FINRA provision was a victory for money managers, said David Tittsworth, executive director of the Investment Adviser Association. “But the jury is still out on what the Senate will do.”