II 

115TH CONGRESS 

2D SESSION S. 2765 

To amend the Investment Advisers Act of 1940 to exempt investment advisers 

who solely advise certain rural business investment companies, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 26, 2018 

Mr. KENNEDY (for himself and Mr. JONES) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

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, 

3 SECTION 1. SHORT TITLE. 

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

5 Act of 2018’’. 

6 SEC. 2. ADVISERS OF RBICS. 

7 Section 203 of the Investment Advisers Act of 1940 

8 (15 U.S.C. 80b–3(b)) is amended— 

9 (1) in subsection (b)— 


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•S 2765 IS

1 (A) in paragraph (6)(B)— 

2 (i) by adjusting the margins accord3 ingly; and 

4 (ii) by striking the period at the end 

5 and inserting a semicolon; 

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

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

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

9 ‘‘(8) any investment adviser, other than an enti10 ty that has elected to be regulated or is regulated as 

11 a business development company pursuant to section 

12 54 of the Investment Company Act of 1940 (15 

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

14 ‘‘(A) rural business investment companies 

15 (as defined in section 384A of the Consolidated 

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

17 2009cc)); or 

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

19 Secretary of Agriculture an application in ac20 cordance with section 384D(b) of the Consoli21 dated Farm and Rural Development Act (7 

22 U.S.C. 2009cc–3(b)) that— 

23 ‘‘(i) have received from the Secretary 

24 of Agriculture a letter of conditions, which 

25 has not been revoked; or 


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

2 rural business investment companies de3 scribed in subparagraph (A).’’; 

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

5 following: 

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

7 this subsection, a venture capital fund includes an 

8 entity described in subparagraph (A) or (B) of sub9 section (b)(8) (other than an entity that has elected 

10 to be regulated as a business development company 

11 pursuant to section 54 of the Investment Company 

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

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

14 following: 

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

16 this subsection, the assets under management of a 

17 private fund that is an entity described in subpara18 graph (A) or (B) of subsection (b)(8) (other than an 

19 entity that has elected to be regulated or is regu20 lated as a business development company pursuant 

21 to section 54 of the Investment Company Act of 

22 1940 (15 U.S.C. 80a–53)) shall be excluded from 

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


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1 SEC. 3. RELATIONSHIP TO STATE LAW. 

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

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

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

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

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

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

8 203 because that person is exempt from reg9 istration as provided in subsection (b)(8) of 

10 such section, or is a supervised person of such 

11 person.’’. 

Æ 


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