The Chairman of the House Financial Services Capital Markets Subcommittee released discussion drafts of new legislation aimed at regulating private funds. The Private Fund Investment Advisers Registration Act would require registration with the Securities and Exchange Commission (SEC) of advisers of “hedge funds and other private pools of capital,” except for advisers to “venture capital funds.” The released draft would establish new recordkeeping and disclosure requirements for private fund advisers, including a requirement to file with the SEC information for each of the advised private funds on assets under management, use of leverage, counterparty credit risk exposure, trading and investment positions and trading practices. The new legislation would also give authority to the SEC to regulate advisers based on “size, scope, business model, compensation scheme, or potential to create or increase systemic risk.”