On June 22, 2011, the Securities and Exchange Commission (the “SEC”) adopted new rules and rule amendments under the Investment Advisers Act of 1940 (the “Advisers Act”) in order to give effect to provisions of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). The SEC’s adopting release can be found here: http://www.sec.gov/rules/final/2011/ia-3221.pdf
The new rules reallocate regulatory responsibility between the SEC and the states by increasing the statutory threshold for registration with the SEC, require advisers to many hedge funds and other private funds to register with the SEC as a result of the Dodd-Frank Act’s elimination of the Advisers Act Section 203(b)(3) “fewer-than-15 clients” exemption, establish new exemptions from SEC registration, implement reporting requirements for certain exempt advisers, and change Form ADV to allow for increased oversight of advisers required to register with the SEC.  Read more…