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ARTICLE · 06 JULY 2011

Private Fund Adviser Exemptions

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The SEC adopted a rules that defines and implement the private fund adviser exemptions.

United StatesFinance and Banking
David Guin
David Guin
Jeffrey Blomberg
Jeffrey Blomberg
Harvey Knight
Harvey Knight
Mark Tice
Mark Tice
Rebecca Wertzer
Rebecca Wertzer
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The SEC adopted a rules that defines and implement the private fund adviser exemptions.

On June 22, 2011, the US Securities and Exchange Commission (the "SEC") issued Release IA-3222 (the "Final Release") adopting rules 203(l) and 203(m) (individually a "Final Rule" and collectively the "Final Rules") under the US Investment Advisers Act of 1940 (the "Advisers Act") that define and implement the private fund adviser exemptions. In this Briefing Note we will summarize the most significant aspects of these Final Rules and highlight where they differ significantly from the SEC's original proposals (the "Proposed Rules").

Background

The Dodd-Frank Act amends the Advisers Act by, among other things, repealing the so-called "Private Adviser Exemption" that exempts advisers with fewer than 15 clients from SEC registration and regulation. In place of the Private Adviser Exemption, the Dodd-Frank Act creates several new exemptions, including an exemption for advisers

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