SEC Delays Implementation Of New Rules For Investment Advisors

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Loeb & Loeb partner Stephen Cohen attended the Securities and Exchange Commission's (the "SEC") Open Meeting held today at the SEC's offices in which the SEC approved a series of rules related to the implementation of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act which will impact both advisers and private funds. Specifically the new rules will increase the statutory threshold for SEC registration of investment advisers to non-fund clients from $25 million to $100 million; require advisers to hedge funds and private equity funds to register with the SEC if they have regulatory assets under management in the U.S ("RAUM") of $150 million or more; provide an exemption from SEC registration for advisers to the following types of funds: venture capital funds (which the new rules define), private funds with regulatory assets under management in the U.S. of less than $150 million and certain foreign private advisers with RAUM of less than $25 million and fewer than 15 U.S clients or investors; and an exclusion for "family office" arrangements (which the new rules define) from the definition of investment adviser under the Investment Advisers Act of 1940. The new rules also create certain recordkeeping and reporting requirements for exempt advisers and the private funds they manage utilizing an amended Form ADV.

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Published In: Administrative Agency Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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