S.Amdt. 3958

SA 3958. Mr. REED (for himself, Mr. Johnson, and Mr. Brown of Ohio)
submitted an amendment intended to be proposed to amendment SA 3739
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to
the bill S. 3217, to promote the financial stability of the United
States by improving accountability and transparency in the financial
system, to end ``too big to fail'', to protect the American taxpayer by
ending bailouts, to protect consumers from abusive financial services
practices, and for other purposes; which was ordered to lie on the
table; as follows:

On page 384, strike line 1 and all that follows through
page 385, line 15.
On page 385, line 16, strike ``409'' and insert ``407''.
On page 386, strike line 10 and all that follows through
page 387, line 2 and insert the following:

SEC. 408. STATE AND FEDERAL RESPONSIBILITIES; ASSET THRESHOLD
FOR FEDERAL REGISTRATION OF INVESTMENT
ADVISERS.

Section 203A(a) of the of the Investment Advisers Act of
1940 (15 U.S.C. 80b-3a(a)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2) Treatment of mid-sized investment advisers.--
``(A) In general.--No investment adviser described in
subparagraph (B) shall register under section 203, unless the
investment adviser is an adviser to an investment company
registered under the Investment Company Act of 1940, or a
company which has elected to be a business development
company pursuant to section 54 of the Investment Company Act
of 1940, and has not withdrawn the election, except that, if
by effect of this paragraph an investment adviser would be
required to register with 5 or more States, then the adviser
may register under section 203.
``(B) Covered persons.--An investment adviser described in
this subparagraph is an investment adviser that--
``(i) is required to be registered as an investment adviser
with the securities commissioner (or any agency or office
performing like functions) of the State in which it maintains
its principal office and place of business and, if
registered, would be subject to examination as an investment
adviser by any such commissioner, agency, or office; and
``(ii) has assets under management between--

``(I) the amount specified under subparagraph (A) of
paragraph (1), as such amount may have been adjusted by the
Commission pursuant to that subparagraph; and
``(II) $100,000,000, or such higher amount as the
Commission may, by rule, deem appropriate in accordance with
the purposes of this title.''.

On page 387, line 3, strike ``411'' and insert ``409''
On page 387, line 13, strike ``412'' and insert ``410''.
On page 388, line 4, strike ``413'' and insert ``411''.
On page 388, line 16, strike ``414'' and insert ``412''.
On page 389, line 3, strike ``415'' and insert ``413''.
On page 390, line 1, strike ``416'' and insert ``414''.
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