Hedge fund and other private investment fund advisers should be aware of a number of significant changes to the registration and reporting requirements under the Investment Advisers Act of 1940, as amended by the Private Fund Investment Advisers Registration Act of 2010, Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Several of the key changes include the following:
- Repeal of the current private adviser exemption under Section 203(b)(3) of the Advisers Act;
- New asset thresholds for federal registration of investment advisers;
- Authorizes the SEC to create an exemption from federal registration for advisers who advise only private funds and have assets under management of less than $150 million; and
- Exclusion of “family offices” from the definition of investment adviser based on prior SEC exemptive relief.
The effective date of the Act is July 21, 2011, except as otherwise provided in the Act. However, an investment adviser to a private fund may register during the one-year transition period, subject to Securities and Exchange Commission (“SEC”) rules.
To view a complete analysis of the changes to the registration and reporting requirements (as provided in an article written by Peter Bilfield, a Partner in our Private Equity Group), please click here.
If you have any questions regarding the requirements or other aspects of the Dodd-Frank Act, please contact a member of our Private Equity Group.