Economic Growth, Regulatory Relief and Consumer Protection Act

  The “Economic Growth, Regulatory Relief and Consumer Protection Act,” signed by the President on May 24, amends Section 3(c)(1) of the Investment Company Act of 1940 to provide that a “qualifying venture capital fund’ may have as many as 250 beneficial holders of its securities – an increase from 100 beneficial holders. A “qualifying venture capital fund” is defined to mean “a venture capital fund that has not more than $10,000,000 in aggregate capital contributions and uncalled committed capital, with such dollar amount to be indexed for inflation once every 5 years by the [Securities and Exchange] Commission, beginning from a measurement made by the Commission on a date selected by the Commission, rounded to the nearest $1,000,000.” The definition of “venture capital fund” set forth in Rule 203(l)-1 under the Investment Advisers Act of 1940 has not been amended. Click here to view the…

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