115TH CONGRESS 

2D SESSION S. 2765 

AN ACT 

To amend the Investment Advisers Act of 1940 to exempt 

investment advisers who solely advise certain rural business investment companies, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2 

†S 2765 ES

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘RBIC Advisers Relief 

3 Act of 2018’’. 

4 SEC. 2. ADVISERS OF RBICS. 

5 Section 203 of the Investment Advisers Act of 1940 

6 (15 U.S.C. 80b–3(b)) is amended— 

7 (1) in subsection (b)— 

8 (A) in paragraph (6)(B)— 

9 (i) by adjusting the margins accord10 ingly; and 

11 (ii) by striking the period at the end 

12 and inserting a semicolon; 

13 (B) in paragraph (7)(C), by striking the 

14 period at the end and inserting ‘‘; or’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(8) any investment adviser, other than an enti17 ty that has elected to be regulated or is regulated as 

18 a business development company pursuant to section 

19 54 of the Investment Company Act of 1940 (15 

20 U.S.C. 80a–53), who solely advises— 

21 ‘‘(A) rural business investment companies 

22 (as defined in section 384A of the Consolidated 

23 Farm and Rural Development Act (7 U.S.C. 

24 2009cc)); or 

25 ‘‘(B) companies that have submitted to the 

26 Secretary of Agriculture an application in ac-
3 

†S 2765 ES

1 cordance with section 384D(b) of the Consoli2 dated Farm and Rural Development Act (7 

3 U.S.C. 2009cc–3(b)) that— 

4 ‘‘(i) have received from the Secretary 

5 of Agriculture a letter of conditions, which 

6 has not been revoked; or 

7 ‘‘(ii) are affiliated with 1 or more 

8 rural business investment companies de9 scribed in subparagraph (A).’’; 

10 (2) in subsection (l), by adding at the end the 

11 following: 

12 ‘‘(3) ADVISERS OF RBICS.—For purposes of 

13 this subsection, a venture capital fund includes an 

14 entity described in subparagraph (A) or (B) of sub15 section (b)(8) (other than an entity that has elected 

16 to be regulated as a business development company 

17 pursuant to section 54 of the Investment Company 

18 Act of 1940 (15 U.S.C. 80a–53)).’’; and 

19 (3) in subsection (m), by adding at the end the 

20 following: 

21 ‘‘(4) ADVISERS OF RBICS.—For purposes of 

22 this subsection, the assets under management of a 

23 private fund that is an entity described in subpara24 graph (A) or (B) of subsection (b)(8) (other than an 

25 entity that has elected to be regulated or is regu-
4 

†S 2765 ES

1 lated as a business development company pursuant 

2 to section 54 of the Investment Company Act of 

3 1940 (15 U.S.C. 80a–53)) shall be excluded from 

4 the limit set forth in paragraph (1).’’. 

5 SEC. 3. RELATIONSHIP TO STATE LAW. 

6 Section 203A(b)(1) of the Investment Advisers Act 

7 of 1940 (15 U.S.C. 80b–3a(b)(1)) is amended— 

8 (1) in subparagraph (C), by striking the period 

9 at the end and inserting ‘‘; or’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(D) that is not registered under section 

12 203 because that person is exempt from reg13 istration as provided in subsection (b)(8) of 

14 such section, or is a supervised person of such 

15 person.’’. 

Passed the Senate October 11, 2018. 

Attest: 

Secretary. 

115TH CONGRESS 

2D SESSION S. 2765 

AN ACT 

To amend the Investment Advisers Act of 1940 to 

for other purposes. tain rural business investment companies, and exempt investment advisers who solely advise cer-