• SEC Proposes Rules Implementing Amendments to the Investment Advisers Act of 1940
  • December 20, 2010
  • Law Firm: Skadden Arps Slate Meagher Flom LLP - New York Office
  • This memorandum provides a general overview of new rules, rule amendments and Form ADV amendments that the Securities and Exchange Commission (the “SEC”) is proposing in order to implement certain provisions of the Private Fund Investment Advisers Registration Act of 2010 (the “Registration Act”). The Registration Act in part: (1) repeals the private adviser exemption of section 203(b)(3) of the Investment Advisers Act of 1940, as amended (the “Advisers Act”), thus requiring most advisers to hedge funds and other private funds to register with the SEC; (2) introduces several new and more limited exemptions for family office advisers, foreign private advisers, advisers to venture capital funds and advisers to private funds with less than $150 million in assets under management in the United States; (3) generally increases the statutory threshold (from $25 million to $100 million) for registration by investment advisers with the SEC rather than the states; and (4) mandates reporting under the Advisers Act by advisers that act as investment advisers solely to: (a) one or more venture capital funds; or (b) private funds if such investment advisers have assets under management in the United States of less than $150 million (collectively the advisers in clauses (a) and (b) are referred to as “exempt reporting advisers”).