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ascertained during an examination, as provided by section 210(b) of this title. ‘‘(B) PROPRIETARY INFORMATION.—For purposes of this paragraph, proprietary information includes sensitive, non- public information regarding— ‘‘(i) the investment or trading strategies of the investment adviser; ‘‘(ii) analytical or research methodologies; ‘‘(iii) trading data; ‘‘(iv) computer hardware or software containing intellectual property; and ‘‘(v) any additional information that the Commis- sion determines to be proprietary. ‘‘(11) ANNUAL REPORT TO CONGRESS.—The Commission shall report annually to Congress on how the Commission has used the data collected pursuant to this subsection to monitor the markets for the protection of investors and the integrity of the markets.’’.

SEC. 405. DISCLOSURE PROVISION AMENDMENT.
Section 210(c) of the Investment Advisers Act of 1940 (15
U.S.C. 80b–10(c)) is amended by inserting before the period at
the end the following: ‘‘or for purposes of assessment of potential
systemic risk’’.

SEC. 406. CLARIFICATION OF RULEMAKING AUTHORITY.
Section 211 of the Investment Advisers Act of 1940 (15 U.S.C.
80b–11) is amended—
(1) in subsection (a), by inserting before the period at
the end of the first sentence the following: ‘‘, including rules
and regulations defining technical, trade, and other terms used
in this title, except that the Commission may not define the
term ‘client’ for purposes of paragraphs (1) and (2) of section
206 to include an investor in a private fund managed by an
investment adviser, if such private fund has entered into an
advisory contract with such adviser’’; and
(2) by adding at the end the following:
Consultation. ‘‘(e) DISCLOSURE RULES ON PRIVATE FUNDS.—The Commission
Deadline. and the Commodity Futures Trading Commission shall, after con-
sultation with the Council but not later than 12 months after
the date of enactment of the Private Fund Investment Advisers
Registration Act of 2010, jointly promulgate rules to establish the
form and content of the reports required to be filed with the
Commission under subsection 204(b) and with the Commodity
Futures Trading Commission by investment advisers that are reg-
istered both under this title and the Commodity Exchange Act
(7 U.S.C. 1a et seq.).’’.

SEC. 407. EXEMPTION OF AND REPORTING BY VENTURE CAPITAL FUND
ADVISERS.
Section 203 of the Investment Advisers Act of 1940 (15 U.S.C.
80b–3) is amended by adding at the end the following:
‘‘(l) EXEMPTION OF VENTURE CAPITAL FUND ADVISERS.—No
investment adviser that acts as an investment adviser solely to
1 or more venture capital funds shall be subject to the registration

LAWS requirements of this title with respect to the provision of investment Regulations. advice relating to a venture capital fund. Not later than 1 year after the date of enactment of this subsection, the CommissionPUBLIC with on anorris VerDate Nov 24 2008 21:17 Aug 02, 2010 Jkt 089139 PO 00203 Frm 00200 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 PUBL203