On Friday, September 9, 2016, the House of Representatives passed H.R. 5424, the Investment Advisers Modernization Act of 2016, by a vote of 261-145. The bill aims to loosen regulations on private equity firms by eliminating duplicative reporting requirements and allowing for tailoring of certain rules. The legislation would eliminate the requirement that private equity firms organized as partnerships provide notice of a change in the membership of the partnership each time such a change is made. Additionally, the bill instructs the SEC to issue a regulation that private fund advisers no longer have to distribute disclosure documents with information relating to the purchase of security if it is "substantially the same" as information required by Form ADV. The bill would also eliminate restrictions on using recommendations and past testimonials in advertising documents that are distributed to qualified clients, "knowledgeable employees," qualified purchasers, or accredited investors. While the bill passed the House with some bipartisan support, it faces a tougher challenge in the Senate and has already been subject to a veto threat from President Obama. Read the summary and text of the Investment Advisers Modernization Act here.