Legislation and Regulation
The PEGCC has advocated before Congress in support of the private equity industry on numerous occasions. In 2009, the then-president of the PEC, Douglas Lowenstein, testified before the House Financial Services Committee (HFSC) in support of legislation requiring private equity and hedge funds to register with the Securities and Exchange Commission (SEC). He stated that the PEC supported registration under the proposed Private Fund Investment Advisers Registration Act because its members perceived the law as an important component of protection for investors against systemic risk. While supporting registration, Lowenstein raised concerns regarding cost for smaller firms.
The Council has testified before Congress on the industry's role in the economy. In 2007, Lowenstein testified before the HFSC on the impact of private equity on employment and companies. In 2009, its chairman Mark Tresnowski testified before the Senate Banking Subcommittee on the potential role of private equity in the recovery of the U.S. economy.
The PEC's initial lobbying efforts were focused on opposing proposed legislation to increase taxation of private equity managers' fees. The Council supported keeping the carried interest tax on managers' fees at the 15 percent capital gains rate, rather than increasing it to the earned income rate. The proposed legislation was rejected but similar proposals were raised in 2009 and 2011, and the PEGCC continued to oppose them.
Read more about this topic: Private Equity Growth Capital Council, Activities
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