On November 10, 2009, U.S. Senate Banking Chairman Christopher Dodd (D-CT) released a discussion draft of the “Restoring American Financial Stability Act of 2009” (RAFSA), a measure that would provide for a historic overhaul of the financial services regulatory system. Title IV of the RAFSA is entitled, the “Private Fund Investment Advisers Registration Act of 2009” (PFIAR), which contains many similarities to legislation approved by the House Financial Services Committee (HFSC) on October 27th and pending a vote on the House floor (Kanjorski Bill) discussed in our October 2009 Alert. At the November 19, 2009 executive session of the Senate Committee on Banking, Housing and Urban Affairs, in which Committee members were given the opportunity to offer opening statements on the RAFSA discussion draft, no statements were made concerning the PFIAR. Chairman Dodd concluded the session by announcing that proposed amendments to RAFSA would be postponed until the week after Thanksgiving, when the markup process will begin.
There are certain differences between the PFIAR and the Kanjorski Bill, including those which in some cases reverse, and in other cases expand upon, the legislative work done in the House. This Alert addresses the distinctions between the PFIAR and the Kanjorski Bill.