California Commissioner of Corporations Proposes Modifying the State’s Investment Advisor Registration Requirements
More investment advisers would be required to follow California's registration requirements under a proposal by the Commissioner (the "Commissioner") of the California Department of Corporations (the "Department"). The proposal would amend Section 260.204.9 (the "Rule") of the Corporate Securities Law of 1968 ("CSL"). The proposed amendment to the Rule would narrow the exemption from the state's registration requirements for certain investments pursuant to Section 25230 of the California Corporations Code ("Section 25230"). The proposed amendment is targeted primarily at unregistered advisers to hedge funds based in California, but may have a more sweeping impact on advisers to alternative investment vehicles.