Core Viewpoint - The SEC proposed amendments to the rules defining which registered investment companies, investment advisers, and business development companies qualify as small entities under the Regulatory Flexibility Act, aiming to better address the regulatory challenges faced by these entities [1][2]. Group 1: Proposed Changes - The proposal aims to increase the asset-based thresholds under which investment companies and investment advisers are classified as small entities [4]. - It seeks to update the method for aggregating related funds' assets for the purpose of defining small entities [4]. - The proposal includes provisions for inflation adjustments to the asset-based thresholds every 10 years [4]. Group 2: SEC's Commitment - The SEC emphasizes its commitment to understanding and addressing the concerns of small entities, with the proposal reflecting its intent to modernize regulatory requirements [3]. - The changes are designed to promote the effectiveness and efficiency of regulations while minimizing the economic impact on small entities [3].