SEC Finalizes Dodd-Frank Rules Affecting Investment Advisers: Private Fund Adviser Exemption and Reporting Requirements

Publication Date: July 07, 2011

Introduction

At an open meeting June 22, 2011 (the "June 22 Meeting"), the Securities and Exchange Commission (the "SEC" or the "Commission") voted to adopt new rules and rule amendments under the Investment Advisers Act of 1940 (the "Advisers Act") that will:

• Require certain advisers to hedge funds and other private funds to register with the SEC
• Establish new exemptions from SEC registration and reporting requirements for certain advisers that are exempt from registration
• Reallocate regulatory responsibility for advisers between the SEC and the states¹

In addition, the Commission amended rules and Form ADV to expand the disclosure provided by registered investment advisers and to require certain items of Form ADV to be completed and reported by Exempt Reporting Advisers (as defined below). The SEC also adopted a new rule that exempts "family offices" from regulation under the Advisers Act and provides a definition of