Sec Adopts Dodd-Frank Act Amendments To The Investment Advisers Act Rules To Exempt Venture Capital Funds



On June 22, 2011, the Securities and Exchange Commission (SEC) adopted new rules to implement Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Title IV increases the supervision of the previously unregulated hedge fund industry, while largely leaving the status quo in place for venture capital funds.1

After a grace period, these new rules will require hedge funds to register with the SEC. Once registered, hedge funds will have to comply with certain restrictions and reporting requirements.2

Venture capital funds will not have to register, but beginning on July 21, 2011, they will have to file reports with the SEC detailing basic identifying information, conflicts of interest, and disciplinary history, if any.

These new rules operate by simultaneously repealing and issuing a set of exemptions to the federal securities laws. Private funds, which include hedge funds, venture capital funds, private equity funds, and other types of pooled investment vehicles, have historically been exempt from the laws that regulate investment vehicles, which include the Investment Company Act (ICA) and the Investment Advisers Act of 1940 (IAA). Title IV repeals the old exemptions, but simultaneously reinstates narrower exemptions for venture capital funds and certain other private funds.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Wilson Sonsini Goodrich & Rosati | Attorney Advertising

Written by:


Wilson Sonsini Goodrich & Rosati on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.