Alert November 16, 2010

SEC to Consider Advisers Act Rulemaking to Implement Dodd-Frank Act Mandates

The SEC announced that the proposed agenda for its open meeting on Friday, November 19, 2010 (link to live webcast to be available here) includes consideration of whether to propose new rules and rule amendments under the Investment Advisers Act of 1940 (the “Advisers Act”) that implement provisions of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act (which was discussed in a July 30, 2010 Goodwin Procter Alert).  The SEC announcement specifically refers to rulemaking that would (a) increase the statutory threshold for adviser registration with the SEC, (b) require advisers to hedge funds and other private funds to register with the SEC, (c) define new exemptions from the registration requirements of the Advisers Act for advisers to venture capital funds and advisers with less than $150 million in private fund assets under management in the U.S., (c) address reporting by certain investment advisers that are exempt from SEC registration and (d) clarify the meaning of certain terms included in a new exemption under the Advisers Act for foreign private advisers.