On June 22, 2011, the SEC adopted final rules as mandated by the Dodd-Frank Act to require many advisers to private funds -- which were previously exempt from registration -- to become registered as investment advisers with the SEC. The final rules also establish new exemptions from the adviser registration rules. The deadline for advisers to register is March 30, 2012. In addition, the final rules will require advisers to submit new information to the SEC periodically -- even those advisers that are exempt from registration. These final rules, while anticipated, will have significant impact on advisers to private funds.
This A Closer Look describes the final rules and their impact on investment advisers.