Enhanced disclosure requirements for advisers of private funds

Section 204 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–4) is amended by adding at the end the following: (g) Enhanced disclosure requirements for advisers of private funds (1) Definitions In this subsection: (A) Country of concern The term country of concern — (i) has the meaning given the term covered nation in section 4872(f) of title 10, United States Code; and (ii) includes a jurisdiction that the Commission, in consultation with the Secretary of State and the Secretary of the Treasury, determines to be subject to the political and legal control of a covered nation, as defined in section 4872(f) of title 10, United States Code. (B) Covered investment adviser The term covered investment adviser means— (i) an investment adviser required to register with the Commission that, together with all related persons, has at least $150,000,000 in private fund assets under management; and (ii) an investment adviser relying on the exemption from registration provided under subsection (l) or (m) of section 203. (C) Private fund asset With respect to an investment adviser, the term private fund asset means an asset under management by the investment adviser that is attributable to a private fund. (D) Related person The term related person has the meaning given that term in the form described in section 279.1 of title 17, Code of Federal Regulations, as in effect on the date of enactment of this subsection. (2) Reporting requirements (A) In general Each covered investment adviser shall file an annual report with the Commission stating the total private fund assets in countries of concern attributable to the private funds advised by the covered investment adviser, which shall be broken down by the percentage of those assets in each country of concern. (B) Application For the purposes of subparagraph (A), the Commission shall determine whether a private fund asset is in a country of concern based on— (i) the amount of capital that is invested in an entity (including a subsidiary of an entity)— (I) that has a physical presence or employees in that country of concern; or (II) the plurality of the sales of which are from that country of concern; and (ii) the proportion of the total assets and liabilities of an entity described in clause (i) that are located in that country of concern. (3) Reporting by Commission (A) Publicly available reports Not later than 1 year after the date of enactment of this subsection, and not less frequently than annually thereafter, the Commission shall prepare and make publicly available a report containing a list of covered investment advisers that, for the period covered by the report, have disclosed to the Commission more than 0 private fund assets in at least 1 country of concern. (B) Additional requirements Each report prepared and made available by the Commission under subparagraph (A) shall— (i) be aggregated by a covered investment adviser; and (ii) include the percentage of private fund assets disclosed by a covered investment adviser, as applicable..