Proposed Legislation Would Require Nearly Every “Investment Adviser” Located in the US or Having a US Client to Register with the SEC

February 20, 2009
Many advisers to privately placed pooled investment vehicles such as hedge funds, private equity funds, venture capital funds, family limited partnerships, and CDOs rely on the “Private Adviser Exemption” to avoid registering with the SEC as investment advisers. A bill was recently introduced in the House of Representatives which, if adopted, would repeal the Private Adviser Exemption and compel any adviser relying on that exemption to register with the SEC. This update examines the changes that may affect private advisers if the bill becomes law.