SEC Amends IAA Definitions to Implement RBIC Adviser Exemptions

The SEC adopted rule amendments to the Investment Advisers Act to implement exemptions provided under the Rural Business Investment Companies ("RBIC") Advisers Relief Act of 2018.

The RBIC Advisers Relief Act amended the Investment Advisers Act of 1940 to provide an exemption from registration for advisers to RBIC. In accordance with the RBIC Advisers Relief Act, the SEC amended the definitions for:

• "venture capital fund" under Investment Advisers Act Rule 203(l)-1 by providing that venture capital funds include RBIC for the purposes of the venture capital fund adviser exemption; and
• "assets under management" under Investment Advisers Rule 203(m)-1(d)(1) by excluding regulatory assets under the management of a private fund that is a Rural Business Investment Company.