SEC Proposes Rules on Investment Adviser Registration

The SEC recently issued proposed rules and rule amendments under the Investment Advisers Act of 1940 (the "Advisers Act") that would give effect to certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). The proposed rules were set forth in two releases. In one release, the SEC proposed rules for the reallocation of responsibility for the oversight of certain mid-sized investment advisers between the states and the SEC, changes to Form ADV, reporting requirements for exempt private advisers, and amendments to the SEC's "pay-to-play" rules. In the other release, the SEC proposed rules to implement the new venture capital, private fund adviser, and foreign private adviser exemptions from investment adviser registration. The key provisions of these proposed rules and rule amendments are summarized below.