Federal Register: Rules Implementing Amendments to the Investment Advisers Act of 1940

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking on investment advisers regulation. The SEC final rule was issued at its June 22, 2011 open meeting.
Dodd-Frank Timeline, Rules Implementing Amendments to the Investment Advisers Act of 1940, SEC
Final Rule Issue Effective Date Compliance Date
July 19, 2011 September 19, 2011 March 30, 2012

Comment letters pertaining the proposed rulemaking can be found here.

On November 19, 2010, the SEC proposed rules concerning amendments to the Investment Advisers Act of 1940 to implement provisions of the Dodd-Frank Act. Among the topics at this meeting were the provisions of Title IV of the Dodd-Frank Act, the statutory threshold for registration by investment advisers with the Commission, hedge fund adviser and private fund adviser registration with the Commission, registration exemptions for reporting by certain investment advisers and regulatory responsibility of the states and the SEC concerning advisers.<ref>SEC Proposes Rules to Improve Oversight of Investment Advisers. SEC. Retrieved on November 29, 2010.</ref> Proposed rules were added to the Federal Register on December 10, 2010.

Proposed Rules

  • Advisers to private fund must provide to the SEC:
  1. "basic organizational and operational information about each fund they manage, such as the type of private fund that it is (e.g., hedge fund, private equity fund, or liquidity fund), general information about the size and ownership of the fund, general fund data, and the adviser's services to the fund; and
  2. identification of five categories of 'gatekeepers' that perform critical roles for advisers and the private funds they manage (i.e., auditors, prime brokers, custodians, administrators and marketers)."
  • Under Dodd-Frank, exemptions exist for:
  1. "advisers solely to venture capital funds;
  2. advisers solely to private funds with less than $150 million in assets under management in the U.S.; and
  3. certain foreign advisers without a place of business in the U.S."

Exempt advisers will still be required to file a limited set of information with the SEC.

  • The SEC raised its Commission registration threshold to $100 million and created a new category of advisers called "mid-sized advisers." Advisers who were formerly required to register with the SEC and are now subject to state regulation must complete the registration transition.



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