SEC Proposes New Investment Adviser Oversight Rules

December 01, 2010
The SEC recently proposed rules under the Investment Advisers Act of 1940 to implement certain provisions of Title IV of the Dodd-Frank Act–the Private Advisers Registration Act. The proposed rules have far-reaching implications on registered as well as unregistered advisers, including (i) increasing the assets under management threshold that advisers must meet in order to be eligible to register with the SEC; (ii) changes to the method in which advisers must calculate their assets under management for regulatory purposes; and (iii) requiring certain advisers who are exempt from registration pursuant to the Dodd-Frank Act to report information regarding the adviser’s organization and business activities to the SEC. The proposed rules also would amend Form ADV to require registered and certain exempt advisers to provide specific information on any private funds managed by the adviser. This update discusses the implications of the proposed rules on advisers who are registered or currently unregistered with the SEC.