The Massachusetts Securities Division has indicated that new regulations requiring 3(c)(1) fund managers to register went into effect on February 3 but will not be enforced until August 3. Although Massachusetts has not yet published the regulations, the MSD has indicated that they will be “almost identical” to those proposed in November. As we previously described (see link below), those proposed regulations require registration of advisers to 3(c)(1) funds unless all investors satisfy the "qualified client" definition under 205-3 of the Advisers Act. In addition to filing reports on Form ADV and paying certain fees, registering advisers would be required to make certain disclosures and deliver audited fund financial statements to investors. The proposed rule would require all investors to satisfy Rule 205-3 ($1.5 Million in net worth or $750,000 invested) after excluding the value of such investor's personal residence.