Page 205

PUBLIC LAW 111–203—JULY 21, 2010 124 STAT. 1579

SEC. 416. GAO STUDY ON SELF-REGULATORY ORGANIZATION FOR PRI-
VATE FUNDS.
The Comptroller General of the United States shall—
(1) conduct a study of the feasibility of forming a self-
regulatory organization to oversee private funds; and
(2) submit a report to the Committee on Banking, Housing, Reports.
and Urban Affairs of the Senate and the Committee on Finan- Deadline.
cial Services of the House of Representatives on the results
of such study, not later than 1 year after the date of enactment
of this Act.

SEC. 417. COMMISSION STUDY AND REPORT ON SHORT SELLING.
(a) STUDIES.—The Division of Risk, Strategy, and Financial
Innovation of the Commission shall conduct—
(1) a study, taking into account current scholarship, on
the state of short selling on national securities exchanges and
in the over-the-counter markets, with particular attention to
the impact of recent rule changes and the incidence of—
(A) the failure to deliver shares sold short; or
(B) delivery of shares on the fourth day following the
short sale transaction; and
(2) a study of—
(A) the feasibility, benefits, and costs of requiring
reporting publicly, in real time short sale positions of pub-
licly listed securities, or, in the alternative, reporting such
short positions in real time only to the Commission and
the Financial Industry Regulatory Authority; and
(B) the feasibility, benefits, and costs of conducting
a voluntary pilot program in which public companies will
agree to have all trades of their shares marked ‘‘short’’,
‘‘market maker short’’, ‘‘buy’’, ‘‘buy-to-cover’’, or ‘‘long’’, and
reported in real time through the Consolidated Tape.
(b) REPORTS.—The Commission shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Represent-
atives—
(1) on the results of the study required under subsection
(a)(1), including recommendations for market improvements,
not later than 2 years after the date of enactment of this
Act; and
(2) on the results of the study required under subsection
(a)(2), not later than 1 year after the date of enactment of
this Act.

SEC. 418. QUALIFIED CLIENT STANDARD.
Section 205(e) of the Investment Advisers Act of 1940 (15
U.S.C. 80b–5(e)) is amended by adding at the end the following:
‘‘With respect to any factor used in any rule or regulation by Order.
the Commission in making a determination under this subsection, Deadlines.
if the Commission uses a dollar amount test in connection with
such factor, such as a net asset threshold, the Commission shall,
by order, not later than 1 year after the date of enactment of
the Private Fund Investment Advisers Registration Act of 2010,

LAWS and every 5 years thereafter, adjust for the effects of inflation on such test. Any such adjustment that is not a multiple of $100,000 shall be rounded to the nearest multiple of $100,000.’’.PUBLIC with on anorris VerDate Nov 24 2008 12:15 Aug 04, 2010 Jkt 089139 PO 00203 Frm 00205 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 APPS06 PsN: PUBL203