Industry Comment

Time is running out if you need to register ...

Wednesday, February 08, 2012

If you haven't yet determined your position in respect of this legislation you must act now!

The Dodd-Frank Act 2010 abolished the previous exemption on registration with the SEC for certain investment advisors and replaced it with three more limited exemptions: the private fund advisers exemption, the venture capital exemption and the foreign private fund advisers exemption.

The private fund advisers exemption is of most use and is applicable to both a US adviser (one which has its principal office and place of business in the United States) and a foreign adviser (one which has its principal office and place of business outside the United States).

What this means in practice is that a foreign adviser can take advantage of the exemption irrespective of the number of US clients that it advises and, provided it is not providing services to those US clients from a place of business in the US, the assets under management (“AUM”) that those clients have. Each of the US clients will however need to be a qualifying private fund.

If the private fund advisers exemption is to be relied on, the foreign adviser will need to complete part 1A of form ADV 1 and will need to file this with the SEC no later than 30 March 2012 registration deadline.

Relying on the exemption will mean that the foreign adviser will not need to register with the SEC nor will it be subject to routine SEC examination, but it will not exempt the adviser from any applicable state registration and as an exempt reporting adviser, the adviser will need to make an annual report to the SEC.  Read more...

Custody Rule information

Wednesday, August 31, 2011

For those advisers needing to register with the SEC as investment advisers one of the more significant rules they will need to comply with is the “Custody Rule.

The attached document sets out the rule and the requirements.

Click Custody Rule to read it.   Read more...

Registration Deadline Extended

Tuesday, June 07, 2011

It is essential that all advisers establish whether they are caught by the registration requirements and which category of exemption they may fall under as the implications are very different. 

If registration is required, it will bring with it reporting obligations and advisers must ensure that they put in place the systems to provide the metrics.  Without comprehensive systems it will be difficult to provide the quarterly data on time.  Currently the reporting deadline is 15 days after the quarter end but this is tough and there are calls for more time.

The detailed rules are now out and Investment Advisers now have until 31 March 2012 to register.

To see what any of the following experts have to say on Dodd-Frank, click on the links below: Read more...

Clarification on final position still awaited

Tuesday, March 08, 2011

While views still differ in the City, it seems that the dramatic impact of the Dodd Frank Act may be less than initially feared.  It still remains important though. Read more...

The Dodd-Frank Wall Street Reform and Consumer Protection Act Update

Thursday, January 27, 2011

Time ticks by towards 21 July 2011, which is now under six months away.  However, the detail that will help determine the extent of necessary action is still to come.  The message remains, however, that you cannot wait until absolute clarity exists and preparations should have commenced, or should be starting soon, towards compliance with the most likely outcome.  NB even certain exempt reporting advisors have some obligations. Read more...

The Dodd-Frank Wall Street Reform and Consumer Protection Act

Wednesday, December 01, 2010

Many private equity advisors will be brought under SEC oversight due to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).  Apart from the few who may gain exemption it will require registration with the SEC and for some, significant changes to their operations, record keeping and disclosures. Read more...