SEC Adopts Final Dodd-Frank Amendment Rules Regarding Registration of Investment Advisers

June 23, 2011
The Securities and Exchange Commission on June 22, 2011 adopted three sets of rules, rule amendments and Form ADV amendments under the Investment Advisers Act of 1940 to implement provisions of Title IV of the Dodd-Frank Act regarding the registration of investment advisers with the SEC. Effective July 21, 2011, the Dodd-Frank Act eliminates Section 203(b)(3) of the Advisers Act, an exemption that many advisers to private funds and certain other clients have relied on in order to avoid registration with the SEC under the Advisers Act. The new rules establish new exemptions from SEC registration and reporting requirements for certain advisers, reallocate regulatory responsibility for advisers between the SEC and the states, extend the compliance date for registration of advisers that would have relied Section 203(b)(3) until March 30, 2012, and define family offices, which will be outside of the definition of “investment adviser” for purposes of the Act. This update provides a summary of the new rules. We will publish a full analysis of the rules upon reviewing them in their final form.