On Wednesday, June 22nd, the SEC is holding an Open Meeting to discuss the proposed registration rule for private fund advisers, the proposed exemptions to registration for certain private fund advisers, and the proposed exclusion for family offices. Many private fund advisers have been expecting a delay in the compliance date for SEC registration. However, one key point cannot be overlooked:
The Dodd-Frank Act effectively repeals the current exemption from registration under Section 203(b)(3) of the Advisers Act as of July 21, 2011. With no additional guidance or rulemaking from the SEC, firms that are not registered by July 21, 2011 will be in violation of Section 203 of the Advisers Act. See letter (pdf) dated April 8, 2011 from Robert Plaze, Associate Director of the SEC’s Division of Investment Management, to David Massey, President, North American Securities Administration Association, Inc. (NASAA).
FrontLine Compliance will provide additional information as soon as it becomes available following the SEC meeting.
About Alex Akesson
Alex has been specializing in hedge fund and alternative investment news since April 2006. Working mainly in research and manager interviews, she has published breaking news on the hedge fund industry on her blog, as well as several industry publications.
Her access to hedge fund managers gives her insight into news stories as well, and the ability to track press releases and other breaking news in real time.
Compliance Alert: Registration for hedge fund/private fund advisers
On Wednesday, June 22nd, the SEC is holding an Open Meeting to discuss the proposed registration rule for private fund advisers, the proposed exemptions to registration for certain private fund advisers, and the proposed exclusion for family offices. Many private fund advisers have been expecting a delay in the compliance date for SEC registration. However, one key point cannot be overlooked:
The Dodd-Frank Act effectively repeals the current exemption from registration under Section 203(b)(3) of the Advisers Act as of July 21, 2011. With no additional guidance or rulemaking from the SEC, firms that are not registered by July 21, 2011 will be in violation of Section 203 of the Advisers Act. See letter (pdf) dated April 8, 2011 from Robert Plaze, Associate Director of the SEC’s Division of Investment Management, to David Massey, President, North American Securities Administration Association, Inc. (NASAA).
FrontLine Compliance will provide additional information as soon as it becomes available following the SEC meeting.
About Alex Akesson
Alex has been specializing in hedge fund and alternative investment news since April 2006. Working mainly in research and manager interviews, she has published breaking news on the hedge fund industry on her blog, as well as several industry publications. Her access to hedge fund managers gives her insight into news stories as well, and the ability to track press releases and other breaking news in real time.