Dodd Frank Act: The Exemptions

The Dodd Frank Wall Street Reform and Consumer Protection Act ('Dodd-Frank Act') was signed on 21 July 2010, Title IV of which amends the Investment Advisers Act of 1940 ('Advisers Act'). On 19 November 2010 the SEC outlined [proposed] exemptions from Dodd-Frank in its publication 'SEC Proposes Rules to Improve Oversight of Investment Advisers' (the 'Proposed Rule'). [The Proposed Rule was subject to industry consultation until 24 January 2011, after which time the SEC were scheduled to publish finalized rules. The article below assumes that the contents of the Proposed Rule were adopted].

Dodd-Frank may require US and non-US private equity fund managers and advisers to register with the SEC by 21 July 2011. The entities affected by these regulations are investment advisers, being entities engaged in the business of advising (including managing others) on the value of securities or as to the advisability of investing in, purchasing or selling securities,