Overview of New Investment Adviser Oversight Rules

October 13, 2011

On June 22, 2011, the Securities and Exchange Commission (SEC) adopted new rules and rule and form amendments under the Investment Advisers Act of 1940, as amended (Advisers Act), that are designed to implement and give effect to the provisions of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). 1 The new rules adopted by the SEC (New Rules) have far- reaching implications for registered as well as unregistered investment advisers, both in the United States and abroad.

This article describes how the New Rules: (i) establish new exemptions and exclusions from Advisers Act registration and reporting requirements for certain advisers; (ii) extend the compliance date for registration of certain previously unregistered advisers until March 30, 2012; (iii) amend Form ADV Part 1; (iv) create a new category of exempt advisers that are subject to limited SEC reporting; (v) reallocate regulatory responsibility for advisers between the SEC and the states; and (vi) define a “family office” that is excluded from the definition of an investment adviser under the Advisers Act.

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