S. 2765 

One Hundred Fifteenth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Wednesday, 

the third day of January, two thousand and eighteen 

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. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

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

2018’’. 

SEC. 2. ADVISERS OF RBICS. 

Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 

80b–3(b)) is amended— 

(1) in subsection (b)— 

(A) in paragraph (6)(B)— 

(i) by adjusting the margins accordingly; and 

(ii) by striking the period at the end and inserting 

a semicolon; 

(B) in paragraph (7)(C), by striking the period at the 

end and inserting ‘‘; or’’; and 

(C) by adding at the end the following: 

‘‘(8) any investment adviser, other than an entity that 

has elected to be regulated or is regulated as a business development company pursuant to section 54 of the Investment Company Act of 1940 (15 U.S.C. 80a–53), who solely advises— 

‘‘(A) rural business investment companies (as defined 

in section 384A of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 2009cc)); or 

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

of Agriculture an application in accordance with section 

384D(b) of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 2009cc–3(b)) that— 

‘‘(i) have received from the Secretary of Agriculture 

a letter of conditions, which has not been revoked; 

or 

‘‘(ii) are affiliated with 1 or more rural business 

investment companies described in subparagraph (A).’’; 

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

‘‘(3) ADVISERS OF RBICS.—For purposes of this subsection, 

a venture capital fund includes an entity described in subparagraph (A) or (B) of subsection (b)(8) (other than an entity 

that has elected to be regulated as a business development 

company pursuant to section 54 of the Investment Company 

Act of 1940 (15 U.S.C. 80a–53)).’’; and 
S. 2765—2 

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

‘‘(4) ADVISERS OF RBICS.—For purposes of this subsection, 

the assets under management of a private fund that is an 

entity described in subparagraph (A) or (B) of subsection (b)(8) 

(other than an entity that has elected to be regulated or is 

regulated as a business development company pursuant to section 54 of the Investment Company Act of 1940 (15 U.S.C. 

80a–53)) shall be excluded from the limit set forth in paragraph 

(1).’’. 

SEC. 3. RELATIONSHIP TO STATE LAW. 

Section 203A(b)(1) of the Investment Advisers Act of 1940 (15 

U.S.C. 80b–3a(b)(1)) is amended— 

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

end and inserting ‘‘; or’’; and 

(2) by adding at the end the following: 

‘‘(D) that is not registered under section 203 because 

that person is exempt from registration as provided in 

subsection (b)(8) of such section, or is a supervised person 

of such person.’’. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.