Alert May 06, 2008

California Announces that it Will Not Proceed with Proposed Narrowing of Private Adviser Licensing Exemption

The California Corporations Commissioner announced that it has decided not to proceed with a September 2007 proposal to amend the rules governing exemptions from the state’s investment adviser licensing requirements.  The proposal would have eliminated the exemption currently available to an investment adviser that  (a)  relies on Section 203(b)(3) under the Investment Advisers Act of 1940, as amended (the federal adviser exemption for advisers with fewer than 15 clients), and  (b)  has at least $25 million in assets under.