Dodd-Frank - reporting requirements for "exempt reporting advisers" - November 2011

Download our latest regulatory brief which focuses exclusively on exempt reporting advisers and their requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”).

The Securities and Exchange Commission (SEC) have adopted final rules as mandated by Dodd-Frank to require many previously exempt advisers to private funds to become registered as investment advisers with the SEC. The final rules also establish new exemptions from the adviser registration rules.

Advisers relying on either of two exemptions—as advisers (1) to venture capital funds or (2) to private funds with less than $150 million in assets under management—will be considered “exempt reporting advisers.” Although not required to become registered with the SEC as advisers, or to come into compliance with all of the provisions of the Investment Advisers Act of 1940 (“Advisers Act”), exempt reporting advisers will nonetheless be required to submit regular reports to the SEC and be subject to SEC examination.

To assist exempt reporting advisers in navigating the new requirements, we suggest the practical considerations outlined in this regulatory brief.

Services offered
PwC is positioned to be your trusted advisor in compliance matters and bring a coordinated team from across service lines and locations to assist you in establishing a strong and up-to-date compliance programme.  We offer assistance in assessing your firm-wide compliance risks, reviewing compliance policies and procedures, designing and implementing books-and-records readiness programmes, migration from an unregistered operating environment to a registered operating environment, firm-wide and/or senior management training and workshops as well as analysis of existing policies and procedures to identify current regulatory gaps and preparation for a SEC examination. Chris Stuart has recently returned from a placement with the US firm of PwC in their Asset Management Regulatory Practice, working on such projects assisting Asset Management clients that are grappling with the impact of Dodd-Frank.  Mary Bruen has also just returned to our team having spent one year on secondment with the FSA working on policy development on the AIFMD, representing the UK at ESMA and drafting sections of the implementing measures on their behalf, including those in relation to transparency.  Together we are working to provide a coordinated combined approach to both Dodd-Frank and AIFMD to those clients impacted by both regulations.

As always, we are more than happy to talk with you about any aspect of Dodd-Frank and how we can support you. Please contact a member of the Dodd-Frank team whose details are alongside or your usual PwC contact.

To view the other PwC publications please visit www.pwcregulatory.com.