{"id":17293,"date":"2010-08-19T07:10:25","date_gmt":"2010-08-19T11:10:25","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=17293"},"modified":"2010-08-19T07:16:44","modified_gmt":"2010-08-19T11:16:44","slug":"eisneramper-legislative-alert-u-s-financial-reform-impact-on-private-investment-advisers","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/08\/2010\/eisneramper-legislative-alert-u-s-financial-reform-impact-on-private-investment-advisers.html","title":{"rendered":"EisnerAmper Legislative Alert: Impact on Private Hedge Fund Advisers"},"content":{"rendered":"<p>New York (HedgeCo.net) &#8211; Certain highlights of Title IV of the the Dodd-Frank Wall Street Reform and Consumer Protection Act (the \u201cAct\u201d), \u201cRegulation of Advisers to Hedge Funds and Others,\u201d are listed below:<br \/>\n<strong><br \/>\nElimination of Private Adviser Registration Exemption<\/strong><\/p>\n<p>Previously, private investment advisers with fewer than fifteen clients during the preceding year were generally exempt form SEC registration.  The Act has eliminated this exemption.<\/p>\n<p><strong>Registration<\/strong><\/p>\n<p>Investment advisers that manage private funds with over $25 million in assets under management will be required to register with certain exceptions.<\/p>\n<p><strong><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/08\/Wall-Street-Reform.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-17297\" title=\"Wall-Street-Reform\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/08\/Wall-Street-Reform.jpg\" alt=\"\" width=\"262\" height=\"203\" \/><\/a>Exceptions:<\/strong><\/p>\n<ul>\n<li> A \u201cmid-sized investment adviser\u201d with assets under management between $25 million and $100 million will be required to be registered and be inspected in the state in which it maintains its principal office and place of business.  Such exception does not apply to managers of registered investment companies, business development companies and advisers required to register in 15 or more states.<\/li>\n<\/ul>\n<ul>\n<li> \u201cAdvisers solely to Venture Capital Funds,\u201d to be defined by the SEC.<\/li>\n<\/ul>\n<ul>\n<li> Advisers that act solely as an adviser to \u201cprivate funds\u201d (hedge funds and private equity funds generally meet the definition of \u201cprivate funds\u201d) and have total assets under management in the U.S. of less than $150 million.  Separately managed accounts generally do not meet the definition of \u201cprivate funds\u201d and therefore do not qualify for this exemption.<\/li>\n<\/ul>\n<ul>\n<li> \u201cForeign Private Advisers\u201d meeting all of the following conditions:<\/li>\n<\/ul>\n<p>&#8211; No place of business in the U.S.<br \/>\n&#8211; Fewer than 15 U.S. clients or investors<br \/>\n&#8211; Less than $25 million in assets under management (or lesser amount to be determined by the SEC) attributable to U.S. clients or investors; and does not hold itself out to the public in the U.S. as an adviser or advise a U.S. registered investment company or business development company<\/p>\n<ul>\n<li> Family Offices, to be defined by the SEC, are excluded from the definition of investment advisers.  Family Offices typically provide investment management and other services to members of a single family as well as certain employees.<\/li>\n<\/ul>\n<ul>\n<li> Registered Commodity Trading Adviser that:<\/li>\n<\/ul>\n<p>&#8211; (i) is registered as a commodity trading adviser with the CFTC and<br \/>\n&#8211; (ii) advises a private fund, provided that the adviser\u2019s business is not predominantly<br \/>\nsecurities-related advice.<\/p>\n<p><strong>Expanded Recordkeeping and Reporting Requirements<\/strong><\/p>\n<p>The Act has expanded the recordkeeping and reporting requirements for both registered and non-registered investment advisers.  For each \u201cprivate fund\u201d advised, these requirements include a description of:<\/p>\n<p>&#8211; Amount of assets under management and use of leverage, including off-balance sheet leverage<br \/>\n&#8211; Counterparty credit risk exposure<br \/>\n&#8211; Trading and investment positions<br \/>\n&#8211; Valuation policies and practices<br \/>\n&#8211; Types of assets held<br \/>\n&#8211; Side arrangements or side letters<br \/>\n&#8211; Trading practices<br \/>\n&#8211; Other information that the SEC deems necessary and appropriate<\/p>\n<p><strong>Adjustment of Accredited Investor Standard<\/strong><\/p>\n<p>The Act sets the net worth threshold for an accredited investor at $1 million.  This threshold applies either individually or jointly and excludes the values of the primary residence of that person.  The Act grants the SEC the right to periodically review and adjust this net worth threshold.<\/p>\n<p>If you wish to discuss financial implications or related aspects of these provisions, please contact Craig Goodman or another EisnerAmper LLP professional. In addition, you are strongly urged to consult qualified legal and other professional advisers to learn the full impact of the Act.<\/p>\n<p>Editing by Alex Akesson<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.net) &#8211; Certain highlights of Title IV of the the Dodd-Frank Wall Street Reform and Consumer Protection Act (the \u201cAct\u201d), \u201cRegulation of Advisers to Hedge Funds and Others,\u201d are listed below: Elimination of Private Adviser Registration Exemption Previously, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,3,13],"tags":[],"class_list":["post-17293","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-regulation","category-hedgeco-news","category-press-releases"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/17293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=17293"}],"version-history":[{"count":4,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/17293\/revisions"}],"predecessor-version":[{"id":17295,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/17293\/revisions\/17295"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=17293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=17293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=17293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}