Industry Comment

Dodd Frank - the end of the beginning?

Tuesday, May 22, 2012

For those who have registered on form ADV as an Exempt Reporting Adviser (“ERA”) you may be thinking that you can breathe a sigh of relief – job done. Unfortunately it is simply the end of the beginning and there are on-going obligations you need to be aware of and comply with.

Below, I start to outline some of the areas which you need to be working on and will continue to update this as more information is obtained.

I am dealing solely with the ERA as this is the dominant status for Non-US Investment Advisers (advising solely private funds and having less than $150 million in private assets under management from the US).

While ERA’s are not fully registered with the SEC, they are subject to reporting, record keeping and other obligations. In particular, for instance, there needs to be written policies and procedures to prevent violations of the Advisers Act and the related SEC rules. These need to be reviewed at least annually.

Additionally the information submitted on form ADV needs to be refreshed annually within 90 days of the ERA’s financial period end.

Click ERA read the full publication.