SEC Proposal Outlines State/Federal Registration, Private Fund Disclosure, and New ADV
The SEC has proposed new registration rules implementing various provisions of the Dodd-Frank Act as well as a new Form ADV that requires significant additional information. The proposal includes transition rules for mid-sized advisers (AUM between $25 Million and $100 Million) to withdraw from SEC registration to register in their home states. The SEC will provide a list of states that do not have an examination program, thereby requiring SEC, rather than state registration. The proposal broadens the definition of “assets under management” for all purposes under the Advisers Act and includes all assets in private funds (valued at the market price) including uncalled capital commitments. The proposal also requires an “ADV lite” for advisers to venture capital funds and private fund advisers with less than $150 Million AUM. The new ADV greatly expands the required disclosure especially with respect to private funds, business information, and affiliations. The proposal states, “We have been concerned that unregistered funds have been used as a vehicle for perpetrating fraud on investors.”
OUR TAKE: No corner of the private fund business will be left unregulated. Larger fund sponsors must register, and advisers to small funds and VC funds must still submit significant information to the SEC. The new ADV will require a great deal more work to prepare and maintain.
Posted by Todd Cipperman at 11/21/2010 10:32 PM 
Categories: Compliance and Operations
Tags: adv registration state federal disclosure private fund
Categories: Compliance and Operations
Tags: adv registration state federal disclosure private fund
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