Page:United States Statutes at Large Volume 124.djvu/1605

124 STAT. 1579 PUBLIC LAW 111–203—JULY 21, 2010 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, and Urban Affairs of the Senate and the Committee on Finan- 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 the Commission in making a determination under this subsection, 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, 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.’’. Order. Deadlines. Reports. Deadline.