SEC Proposes New Investment Adviser Oversight Rules

The Securities and Exchange Commission ("SEC") on November 19, 2010 proposed new rules under the Investment Advisers Act of 1940, as amended ("Advisers Act"), to implement certain provisions of Title IV of the Dodd- Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"), the Private Fund Investment Advisers Registration Act of 2010 ("Advisers Registration Act").¹ The Advisers Registration Act changes take effect on July 21, 2011.

The new rules, among other things would: (i) increase the asset threshold which advisers must meet in order to register with the SEC; (ii) clarify the exemption for foreign private advisers; (iii) clarify the exemption for advisers to venture capital funds and mid-sized advisers; (iv) clarify certain registration requirements for advisers to private funds; and (v) amend Form ADV to facilitate reporting by advisers that are exempt from registration.