Alert July 12, 2011

SEC Staff Posts FAQ on Mid-Sized Advisers

The staff of the SEC’s Division of Investment Management has posted Frequently Asked Questions Regarding Mid-Sized Advisers on the SEC website.  The FAQ removes Minnesota from the list of states in which a mid-sized adviser would not be “subject to examination” by a state securities authority, leaving only New York and Wyoming.  For a discussion of the mid-sized adviser category under the Investment Advisers Act of 1940 (the “Advisers Act”) created by the Dodd-Frank Act, see the June 30, 2011 Goodwin Procter Alert, which discusses state versus federal regulation under recent Advisers Act rulemaking designed to implement changes in the federal regulation of investment advisers effected by the Dodd‑Frank Act.